Question: Fair value, cost and equity methods. In each case, assume Big Company owns 20% of the stock of Little Company. a. Assuming Big Company uses

 Fair value, cost and equity methods. In each case, assume Big

Fair value, cost and equity methods. In each case, assume Big Company owns 20% of the stock of Little Company. a. Assuming Big Company uses the equity method to account for this investment, what entry or (if any) would Big Company make when it receives a $1,000 dividend check from Little? b. Assuming Big Company uses the fair value method to account for this investment, what entry (if any) would Big Company make when it receives a $1,000 dividend check from Little? c. Assuming Big Company uses the equity method to account for this investment, what entry (if any) would Big Company make when Big learns that Little had net income of $10,000 for the year? d. Assuming Big Company uses the fair value method to account for this investment, what entry (if any) would Big Company make when Big learns that Little had net income of $10,000 for the year

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