THIS IS A TIMED TEST. Please answer the questions within 2 hours. Thank you.

1.Jason Company owns 24% of the voting common stock of Kalco Corp. Jason does not have the ability to exercise significant influence over the operations of Kalco. What method should Jason use to account for its investment in Kalco?

2.Sand Co. acquired Fence Co., and, in affecting this business combination, there was a cash-flow performance contingency to be paid in cash and a market-price performance contingency to be paid in additional shares of stock. In what accounts and in what section(s) of a consolidated balance sheet are these contingent consideration items shown?