Please answer all step by step i need to understand the material thank you
ELO Fair Value and Equity Method Gompared Jaycie Phelps Inc. acquired of the outstanding common stock of Theresa Kulikowski Inc. on December The purchase
price was $ for shares. Kulikowski Inc. declared and paid an $ per share cash dividend on June and on December Kulikowski reported net income of $ for The
fair value of Kulikowski's stock was $ per share at December
Instructions
a Prepare the journal entries for Jaycie Phelps Inc. for and assuming that Phelps cannot exercise significant influence over Kulikowski.
b Prepare the journal entries for Jaycie Phelps Inc. for and assuming that Phelps can exercise significant influence over Kulikowski.
c At what amount is the investment in securities reported on the balance sheet under each of these methods at December What is the total net income reported in under each ofthese
methods?
