Question: under the equity method Equity Method Investment with Cost in Excess of Book Value Revco Corporation purchases 40 percent of the voting stock of Ronco

under the equity method Equity Method Investment with Cost in Excess of Book Value Revco Corporation purchases 40 percent of the voting stock of Ronco Pharmaceuticals on January 1, 2019, for $15 million in cash. Ronco's book patents (10-year life at $2 million. Ronco pays dividends of $250,000 and reports net income of $900,000 for 2019. reveals that Ronco's reported )are undervalued by $1 million and it has unreported technology (5-year life) valued value at the date of acquisition is $6 million. Investigation Required Prepare the journal entries on Revco's books to report the above information assuming Revco accounts for its investment in Ronco using the equity method. At what amount does Revco report the investment in Ronco on its December 31, 2019, balance sheet

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