Q:Question:Define the equity method Use the following example to describe the equity method Presume that Company A bought 30% of Company B??s outstanding common stocks

Q:Question:Define the equity method Use the following example to describe the equity method Presume that Company A bought 30% of Company B�s outstanding common stocks at $400,000 (cash) on 01/01/2020 During 2020, Company B earned net income of $200,000 and paid dividends of $40,000 Provide the journal entries for this equity investment in fiscal year 2020 What is the balance for this equity investment on 12/31/2020? Explain why the accounting numbers