Palmer Company purchased 90% of the outstanding common stock of Stevens Company on January 1, 2014...

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Palmer Company purchased 90% of the outstanding common stock of Stevens Company on January 1, 2014 for $1,000,000. During the next three years, Salem had the following income and dividends paid: Year 2014 2015 2016 Income $10,000 $11,000 $45,000 Dividends $0 So $35,000 Prepare the journal entries made under both methods and then compute the ending balance in the "investment" account under both methods. Account Cost Method DR CR Equity Method Account DR CR Investment Account balance Investment Account balance Palmer Company purchased 90% of the outstanding common stock of Stevens Company on January 1, 2014 for $1,000,000. During the next three years, Salem had the following income and dividends paid: Year 2014 2015 2016 Income $10,000 $11,000 $45,000 Dividends $0 So $35,000 Prepare the journal entries made under both methods and then compute the ending balance in the "investment" account under both methods. Account Cost Method DR CR Equity Method Account DR CR Investment Account balance Investment Account balance