requirement #2

Requirement #1

As a long term investment, Painters' Equipment Company purchased 25% of AMC Supplies Inc's 520,000 shares for $600,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC's net assets were equal During the year, AMC earned net income of $370,000 and distributed cash dividends of 25 cents per share At year-end, the fair value of the shares is $637000 Required: 1. Assume no significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year 2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. Journal entry worksheet