3. LONG-TERM : EQUITY METHOD , GOODWILL : ENTRIES AND
REPORTING FOR THREE YEARS
On January 1, 2015, Jane Company purchased 30% of the 3,000 outstanding
ordinary shares par P 10 of Z Corporation at P 17 per share as long-term
investment. The following data relates to Z Corporation
a. At acquisition date : January 1, 2015
	VALUE AT
	Book	Market
Assets not subject to depreciation	250,000	260,000
Assets subject to depreciation, net (10 year remaining life, straight-line	200,000	220,000
	450,000
Liabilities	50,000	50,000
Ordinary Shares (par P 10)	300,000
Retained Earmings	100,000
	450,000
* Difference is due to inventory, and this inventory is sold during 2015
b. Selected data available at December 31, 2015 and 2016
	2015	2016
Cash dividends declared and paid by Z Corporation during the year	8,000	5,000
Income reported by Z Corporation
Income (Loss)	22,000	- 10,000
Quoted Market Price per share Z Corporation shares (December 31)	20	18
c. On January 2, 2017 , Jane Company sold 500 of the Z shares at P 18 per
share
REQUIRED
1. Provide all the appropriate entries for Jane Company during 2015 and 2016
2. Provide the entry required on Janaury 2, 2017
3. Show what items and amount s based on requirements 1 and 2 will be
reported on the 2015, 2016 and 2017 Income Statements and on the 2015
and 2016 Statements of Financial Position