1. On January 2, 2014, Green Energy Corp. Purchased 40% of the outstanding common shares of EEC Company for $500 million. At the date of purchase, the fair value of EECs net assets was $800 million. The book values and fair values for all balance sheet items of EEC Company were the same on January 2, 2014. EEC Company reported net income of $100 million for the year ended December 31, 2014 and paid a cash dividend of $20 million to all shares outstanding in 2014 Green Energy Corp. received $8 million cash dividend from EEC in 2014.

   1. Prepare all appropriate journal entries related to the investment ro the investment in EEC Company during 2014 for Green Energy Corp. using the equity method.

   2. If the bool values and fair values for all balance sheet items of EEC Company were the same on January 2, 2014 except for the plant facilities. The fair value exceeds book value of plant facilities by $30 million. The estimated useful life of the plant facilities is 15 years. Using the straight-line depreciation method, prepare the journal entry for the adjustment of the depreciation of the investees depreciable asset step-up

   3. Assuming Green does not have significant influence over the operations of EEC, and classify its investment in EEC as available-for-sale securities. The fair value of Greens investment in EEC was $570 million on 12/31/14 and the fair value adjustment balance was debit of $20 million on 12/31/14. Record Greens investment in EEC in 2014, including the fair value adjustment entry on 12/31/14/

   4. (Bonus Question ) (3 points) What is the goodwill for Greens acquisition of 40% of EECs ownership?