Write the journal entries for the following transactions under both equity method and fair value method.

Transaction 1: (1/1/2001) Company A invests $700,000 (cash) in the investee Company B.

Fair value method:

Equity method:

Transaction 2:At the end of the year (12/31/2001), there is a $20,000 difference between market value and book value of the investment (FV>BV).

Fair value method:

Equity method:

Transaction 3: At the end of the year (12/31/2001), company B reports $100,000 profit.

Fair value method (assuming the investment is 10% of the company's outstanding shares):

Equity method (assuming the investment is 30% of the company's outstanding shares):

Transaction 4: A receives cash dividends in the amount of $10,000 (1/31/2002).

Fair value method:

Equity method:

Write the journal entries for the following transactions under both equity method and fair value method. Transaction 1: (1/1/2001) Company A invests $700.000 (cash) in the investee Company B. Fair value method: Equity method: Transaction 2:At the end of the year (12/31/2001). there is a $20.000 difference between market value and book value of the investment (FV>BV). Fair value method: Equity method: Transaction 3: At the end of the year (12/31/2001), company B reports $100.000 profit. Fair value method (assuming the investment is 10% of the company's outstanding shares): Equity method (assuming the investment is 30% of the company's outstanding shares): Equity method: Transaction 3: At the end of the year (12/31/2001), company B reports $100,000 profit. Fair value method (assuming the investment is 10% of the company's outstanding shares): Equity method (assuming the investment is 30% of the company's outstanding shares): Transaction 4: A receives cash dividends in the amount of $10,000 (1/31/2002). Fair value method: Equity method: T T T Arial 3 (12pt) V TE is