Suppose that on Jan 6, 2018, Excel Motors paid $240,000,000 for its 45% investment in Dynamic Motors. Excel has significant influence over Dynamic after the purchase. Assume Dynamic earned net income of $10,000,000 and paid cash dividens of $15,000,000 to all outstanding stockholders during 2018.

What method should Excel Motors use to account for the investment in Dynamic Motors? Give your reasoning.

Excel Motors should use the (available for sale, consolidation, equity, held-to-maturity) method to account for its investment in Dynamic Motors.

Journalize the following:

Excel motors paid $240,000,000 for its 45% investment in Dynamic Motors

Dynamic paid cash dividens of $15,000,000 to all outstanding shareholders during 2018

Dynamic earned net income of $10,000,000 during 2018

Post all 2018 transactions to the investment T-account. What is its balance after all the transactions are posted? ow would this balance be classified on the balance sheet dated Dec 21, 2018?