1. There are many accounting principles we have covered,

Which one accounting principle is reflected in the recording of fixed assets (property et al) at their original cost?

A. Matching

B. Conservatism

C. Consistency in exchange rates

D. Fair value principles

2. Willard Co. acquired a 30% interest in Diltronics Corp for $820,000 and appropriately applied the equity method to account for this investment, since Willard had a "controlling interest."

During the first year, Diltronics reported net income of $250,000 and paid cash dividends totaling $50,000.

Under the equity method of accounting, what amount will Willard report on its INCOME statement as it relates to this investment in Diltronics Corp at the end of the first year ?

A. Investment earnings totaling $75,000

B. Investment earnings totaling $60,000

C. Net investment earnings totaling $300,000

D. Receipt of dividends totaling $15,000

E. Net investment earnings of $90,000