Q:Question:Use the following example to describe the equity method (12 points) Presume that Company A bought 30% of Company B??s outstanding common stocks at $400,000

Q:Question:Use the following example to describe the equity method (12 points) Presume that Company A bought 30% of Company B�s outstanding common stocks at $400,000 (cash) on 01/01/2020 During 2020, Company B earned net income of $200,000 and paid dividends of $40,000 Provide the journal entries for this equity investment in fiscal year 2020 What is the balance for this equity investment on 12/31/2020?A:Answer:Date Account Debit $ Credit $ 1/1/2020 Investment ...