Question: Give the entry in each situation or explain why no entry is needed. In each case, Big Company owns stock in Little. 1. Big Company

Give the entry in each situation or explain why no entry is needed. In each case, Big Company owns stock in Little.

1. Big Company uses the equity method of accounting for Little. Big owns 25% of Littles stock. Big learns that Little had net income of $4,000 during the year.

2. Big uses the fair market value method of accounting for Little. Big owns 25% of Littles stock. Big learns that Little had net income of $4,000 during the year.

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