question 1:

question 2:

Carla Vista Company purchased 200 of the 1000 outstanding shares of Darby Company's common stock for $550000 on January 2, 2018. During 2018, Darby Company declared dividends of $75000 and reported earnings for the year of $350000. If Carla Vista Company uses the equity method of accounting for its investment in Darby Company, its Equity Investments (Darby) account at December 31, 2018 should be $620000. $550000. $605000. $535000. Novak Corporation leases equipment from Falls Company on January 1 2017. The lease agreement does not transfer ownersh p, contain a bargain purchase option, and is not a speclalzed asset It covers 3 years of the equipment's8-year useful leand the present value of the lease pirments isless than 90%efthe fair value oftheasset eased Theannual leise pan er ss3 ao atthe ningofead yer and Kieston iere eria borro i .t's withittunane son- ate Prepare all the necessary journal entries for Falls Company lthe lessor) for 2017.assuming the equioment s carried at a cost of $168,000.Ceditcount titles are automaticolly indented when the ount is entered De net indent manlly Date Account Tities and Explanation 2017 To reoord the recogition of the reverue each (To reoord depreciation expense on the leased equipment