Question 3 1. Brian Company acquired 30% of the stocks of Travis Company for $100 million cash on 1/1/20X1. Travis Company reported a net income of $25 million for the period 1/1/20X1 to 12/31/20X1. Travis Company also declared and paid a total cash dividend of $12million to all of its shareholders. For the year 20X1, show the entries that Brian Company will make related to the above transactions, assuming that it uses the equity method. 2. Trevor Company acquired 10% of the stocks of Easton Company for $30 million cash on 1/1/20X1. Easton Company reported a net income of $10 million for the period 1/1/20X1 to 12/31/20X1. Easton Company also declared and paid a total cash dividend of $5 million to all of its shareholders. For the year 20X1, show all the entries that Trevor Company will make related to the above transactions, assuming that is uses the market method. 37 38 Question 3 Assets Investment bits Liabilities and S Retained farnings Comments on Retained anings 40 Teles Cash 42 1/1/20X1 41 12/31/20X1 44 20X1 whether it affect reve, expectes type of pensie 46 asins 41 Assets 42 Dates Cash Investment abilities Retained aming Comments on Red Fanting." 58 S 55 whither is affecte, pese afspeel, 54