Question : 20 jadara Company purchased 40% of Jordan Corporation on January 1, 2014 for $150,000. Jordan Corporation's balance sheet at the time of acquisition was as follows: Cash $30,000 Accounts Receivable 120,000 Inventory 80,000 Land 150,000 Buildings & Equipment 300,000 Less: Acc. Depreciation (120,000) Total Assets $560,000 Current Liabilities $40,000 Bonds Payable 200,000 Additional Paid in Capital 40,000 Common Stock 200,000 Retained Earnings 80,000 Total Liabilities and Equities $560,000 Activate w Go to Settings 2021 Shakir A. Mrayyen dudd.edu.jo/Exam/index/11154/ During 2014, Jordan Corporation reported net income of $30,000 and paid dividends of $9,000. The fair values of Jordan assets and liabilities were equal to their book values at the date of acquisition, with the exception of Building and Equipment, which had a fair value of $35,000 above book value. All buildings and equipment had a remaining useful life of five years at the time of the acquisition. The amount attributed to goodwill as a result of the acquisition in not impaired. Required: A. What amount of investment income will jadara record during 2014 under the equity method of accounting? B. What amount of income will jadara record during 2014 under the cost method of accounting? C. What will be the balance in the investment account on December 31, 2014 under the cost and equity method of accounting