Situation 2: Goebel Company acquired a 30% interest in Dobbs Company on December 31, 2018 for $350,000. During 2019 Dobbs Company had net income of $150,000 and paid a cash dividend of $60,000. (Dobbs Company paid $60,000 cash dividend to all of its shareholders.) 14. Asom Assuming no other factors need to be considered, 30% interest acquired by Goebel enables them to exercise "significant influence over the Dobbs Company. Goebel should account for the investment a. by using the equity method. b. by using the fair value method. c. by using the effective interest method. d. by consolidation. 15. On December 31, 2018, the amount of the debit to Equity Investments (Dobbs) would have been a. $278,000. b. $230,000. c. $350,000. d. $360,000. 16. Based on the information of cash dividend given, regular cash dividends received by Goebel Company are recorded as a. A reduction of the investment $18,000. b. A reduction of the investment $60,000. c. Dividend revenue of $18,000. d. Dividend revenue of $60,000. 17. Based on the information of net income reported by Dobbs Company, applying the equity method would lead to an addition to the carrying value of the Equity Investments (Dobbs) account in 2019 of a. $0. b. $30,000 c. $45,000. d. $150,000