QUESTION 7 On January 1, 2020, Martsch Corp. purchased 300,000 of the 1,000,000 outstanding shares of Bee Thousand Inc.'s common stock for $15 per share. Because this investment gives Martsch significant influence over Bee Thousand, Martsch uses the equity method to account for it. During 2020, Bee Thousand declared and paid total dividends of $200,000 and reported net income for the year of $750,000. At December 31, 2020, the fair value of Bee Thousand stock is $16 per share. Ignoring tax effects, how much would the investment in Bee Thousand affect Martsch's reported income on its income statement for 2020? O S60,000 increase $165,000 increase $225,000 increase $285,000 increase O S360,000 increase OS525,000 increase QUESTION 8 Refer to the information in question #7. What is the carrying value of the asset for the investment in Bee Thousand that would be reported on Martsch's December 31, 2020 balance sheet? S4,665,000 O S4,725,000 S4,785,000 S4,800,000 S4,860,000 S4,965,000 QUESTION 7 On January 1, 2020, Martsch Corp. purchased 300,000 of the 1,000,000 outstanding shares of Bee Thousand Inc.'s common stock for $15 per share. Because this investment gives Martsch significant influence over Bee Thousand, Martsch uses the equity method to account for it. During 2020, Bee Thousand declared and paid total dividends of $200,000 and reported net income for the year of $750,000. At December 31, 2020, the fair value of Bee Thousand stock is $16 per share. Ignoring tax effects, how much would the investment in Bee Thousand affect Martsch's reported income on its income statement for 2020? O S60,000 increase $165,000 increase $225,000 increase $285,000 increase O S360,000 increase OS525,000 increase QUESTION 8 Refer to the information in question #7. What is the carrying value of the asset for the investment in Bee Thousand that would be reported on Martsch's December 31, 2020 balance sheet? S4,665,000 O S4,725,000 S4,785,000 S4,800,000 S4,860,000 S4,965,000