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P16-3B Spochow Corp. has a new accounting co-op student who heard that the accounting For equity investments changes with the amount of shares held. The student needs to 1 2 3 know the accounting differences between two different scenarios and how Soochow Compare acc Corp. should record the transaction and balances if it owns different amounts of methods ass Hughes Lid. shares as a long-term investment. Hughes Ltd. has a total of 35,000 percentage shares outstanding. Answer the following questions for each option: Option 1: Option 2: 3,800 shares 11,900 shares Which accounting method should be used for this long-term investment? Journal entry to record purchase of shares at $35 each. Ignore brokerage commissions. Journal entry to recognize share of $40,000 in dividends declared and paid. Journal entry to recognize $75,000 in net income declared by Hughes Ltd. Journal entry to recognize the year-end market value of $34 per share. What is the balance in the investments account at year-end? all the common shares of Sienna Ltd., and Sienna 4 The fair market value of Sienna's net Prep