11) The following events occurred in 2018 and 2019 in relation to Beaver Inc.'s investment...
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11) The following events occurred in 2018 and 2019 in relation to Beaver Inc.'s investment in Big Lion Corporation: On January 1, 2018 Beaver Inc. acquired 25,000 shares of Big Lion for $75 a share. Because Beaver Inc owns 25,000 of the 100,000 outstanding shares of Big Lion it accounts for its investment using the equity method. Big Lion and Beaver Inc. both have fiscal years ending on December 31. For fiscal 2018, Big Lion Corporation reported income of $450,000 and paid a dividend of $300,000. On December 31, 2018 shares of Big Lion Corporation were trading at $70 per share For fiscal 2019, Big Lion Corporation reported income $150,000 and paid a dividend of $100,000 On December 31, 2019 shares of Big Lion Corporation were trading at $80 per share What entry does Beaver Inc. make to record its investment in Big Lion Corporation on January 1, 2018? What amount of income/loss does Beaver Inc. record on its 2018 Income Statement in relation to its investment in Big Lion Corporation? What is the book value of Beaver Inc.'s investment in Big Lion Corporation at the end of 2018? At the end of 2019
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