Pay Company purchased 90% of the outstanding common stock of Slate Company on January 1, 2011, for $450,000. During 2011, 2012, 2013, and 2014. Slate earned $30,000 each year and paid no dividends. During 2015 Slate earned $134,000 and paid $50,000 in dividends. Prepare the book entries that would be made each year under BOTH THE COST AND EQUITY METHOD  of recording investments. Since they will all be the same, you may make just one set of entries for 2009, 2010, 2011, and 2012 income. Then compute the ending balance in the "investment account" balance.

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Cost Method Entries 2011 Investment in Slate Co 450000 Cash 450000 2012 No e... View the full answer