Question: Apply the Equity Method to find the result for the following events a. On December 31, 2000, Company P invests $300 in Company S and

Apply the Equity Method to find the result for the following events
a. On December 31, 2000, Company P invests $300 in Company S and receives 30% of the shares of Company S in return. We assume that Company S’s equity (book value) at the time of the purchase was $1,000 (i.e. P paid book value: 30% of $1,000).
b. During the year ended December 31, 2001, Company S earns $100 and pays cash dividends of $20
c. Company S earns $150 and pays dividends of $60 in 2002

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