Question: BSE 3120 Intermediate Accounting II Group Homework Problem On January 1, 2020, Graham Corporation purchased 20% (5,000 shares) of the outstanding stock of Conor Corporation

BSE 3120 Intermediate Accounting II Group Homework Problem On January 1,

BSE 3120 Intermediate Accounting II Group Homework Problem On January 1, 2020, Graham Corporation purchased 20% (5,000 shares) of the outstanding stock of Conor Corporation for $100,000. At the end of 2020, Conor Corporation's stock had a fair market value of $24 per share and at the end of 2021, the stock had a fair market value of $22 per share. During 2021, Conor Corporation paid dividends of $3.00 per share and earned $60,000 in net income. a. Prepare the journal entries that Graham would make during 2021 assuming that they do NOT have significant influence over Conor as a result of their stock ownership (i.e. fair value method). b. Prepare the journal entries that Graham would make during 2021 assuming that they do have significant influence over Conor as a result of their stock ownership (i.e. equity method)

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