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Required information [The following information applies to the questions displayed below.] Lisa Company had outstanding 110,000 shares of common stock. On January 10, 2018, Marg
Required information [The following information applies to the questions displayed below.] Lisa Company had outstanding 110,000 shares of common stock. On January 10, 2018, Marg Company purchased a block of these shares in the open market at $18 per share, with the intent of holding the shares for a long time. At the end of 2018, Lisa reported net income of $310,000 and cash dividends of $0.80 per share. At December 31, 2018, Lisa Company stock was selling at $15 per share. Required: 1-a. Identify the method of accounting that Marg Company should use for purchasing 12,100 shares (Case A). The Fair Value Method The Equity Method 1-b. Identify the method of accounting that Marg Company should use for purchasing 49,500 shares (Case B). The Fair Value Method The Equity Method
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