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Summary of Year 1 and Year 2 Equity Method Entries? Example: Equity Method versus Cost Method Pea Corporation created Soup Corporation with a transfer of

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Example: Equity Method versus Cost Method Pea Corporation created Soup Corporation with a transfer of $500 cash. During Soup Corp.'s first year of operations, it generated a net loss of $100 and paid no dividends. During Soup Corp.'s second year of operations, it generated net income of $200 and paid dividends of $50. What is the balance in the Investment in Sub account on Parent's books at the end of year 2 using the equity method? What if Parent uses the cost method? What journal entries would Parent make under each method

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