Prime Industries acquired an 80 m 000 outstanding shares of common stock at book value of S105 000 on January 1, U percent interest in Sands Company by purchasing 24.000 of its ported net income in 2016 of $45.000 and in 2017 afs000 eumed venly throughout als throughout the respective years. Prime received $12.000 dividends from Sands in 2016 and $18,000 in 20 ds from Sands in 2016 and $18.000 in 2017. Prime uses the equity method to record its investment. Value of S105.000 on January 1, 2016. Sands Prime should record investment income from Sand dupa 2017 of a) $18,000. b) $60,000. c) S48,000 d) $33,600 e) $84,000. 14) Prime Industries acquired an 80 meet interest in Sands Company by purchasing 24,000 of its 0,00 outstanding shares of common stock at book value of $150,000 on January 1, 2016. Sands reported net income in 2016 of $50.000 and in 2017 of $60.000 earned evenly throughout the respective years. Prime received $12.000 dividends from Sands in 2016 and $18,000 in 2017. Prime uses the equity method to record its investment. The balance of Prime's Investment in Sands account at December 31, 2017 is: a) $105,000. b) $238,000. c) $208,000. d) $165,000. e) $153,000 15) Pendleton Company acquired a 70% interest in Sunflower Company on December 31, 2016, for $380,000. During 2017 Sunflower had a net income of $30,000 and paid a cash dividend of $10,000. Applying the cost method would give a debit balance in the Investment in Stock of Sunflower Company account at the end of 2017 of: 0 a) $400,000. b) $394,000. c) $373,000. d) $380,000 e) $394,000 5 Page