ose that on January 6, 2024, Northern Motors paid

$380,000,000

for its

40%

investment in Coach Motors. Northern has significant influence over Coach a

0,000,000

and paid cash dividends of

$15,000,000

to all outstanding stockholders during 2024 . (Assume all outstanding stock is voting stock) the requirements.\ uirement 1. What method should Northern Motors use to account for the investment in Coach Motors? Give your reasoning\ hern Motors should use the equity method to account for its investment in Coach Motors because the investment resents a

40%

ownership of Coach Motors and Northern Motors has significant influence over Coach Motors.\ quirement 2. Journalize all required 2024 transactions related to Northern Motors's Coach investment. Include an explanation for each entry. (Record debits of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining thern Motors paid

$380,000,000

for its

40%

investment in Coach Motors.

se that on January 6, 2024, Northern Motors paid $380,000,000 for its 40% investment in Coach Motors. Northern has significant influence over Coach ,000,000 and paid cash dividends of $15,000,000 to all outstanding stockholders during 2024 . (Assume all outstanding stock is voting stock) the requirements. irement 1. What method should Northern Motors use to account for the investment in Coach Motors? Give your reasoning. lern Motors should use the method to account for its investment in Coach Motors because the investment esents a 40% ownership of Coach Motors and Northern Motors has significant influence over Coach Motors. uirement 2. Journalize all required 2024 transactions related to Northern Motors's Coach investment. Include an explanation for each entry. (Record debits of the journal entry table. If no entry is required, select "No entry required" on the first line of the Accounts and Explanation column and leave the remaining hern Motors paid $380,000,000 for its 40% investment in Coach Motors