Sampson Financial paid $530,000 for a 25% investment in the common stock of Clipper, Inc. For the first year, Clipper reported income of $230,000, and at year-end declared and paid cash dividends of $125,000. On the balance sheet date, the fair value o Sampson's investment in Clipper stock was $370,000. Read the requirements Requirement 1. Which method is appropriate for Sampson to use in accounting for its investment in Clipper? Why? It would be appropriate for Sampson to use the equity method of recording its investment in Clipper, Inc. With a holding of this size, 25% of the common stock, it is probable that Sampson can exercise significant influence on the operations of Clipper, Inc. Requirement 2. Show everything that Sampson would report for the investment and any investment revenue in its year-end financial statements Balance Sheet (partial): Assets Income Statement (partial): - X Requirements 1. Which method is appropriate for Sampson to use in accounting for its investment in Clipper? Why? 2. Show everything that Sampson would report for the investment and any investment revenue in its year-end financial statements