a) Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method

Question:

a) Yaro Company owns 30% of the of Dew Co. and uses the equity method to account for the investment. During 200X, Dew reported income of $250,000 and paid dividends of $80,000. There is no amortization associated with the investment. During 200X, how much income should Yaro recognize related to this investment?
b) Selig acquired 100% of Maree for $1,400,000 cash in a transaction to be accounted for as a merger. The net assets had a book value $1,150,000. The net assets had a fair market value of $1,300,000. How much (if any?) will be recorded in this transaction?
c) On January 2, 200X, Heinreich Co. paid $500,000 for the voting of Jones Corp. At the time of the investment, Jones had net assets with a book value and fair value of $540,000. What is the amount of that would result from this transaction?
d) X and Y each have capital balances of $100,000 and share net income 50:50. Z joins the Z purchases an interest in the by paying X $40,000 for half of his interest. What will the balance be in Z
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