The beginning balance sheet of New Technology Corporation included the following: Long-Term Investment in MSC Software (equity-method

Question:

The beginning of New Technology included the following:
Long-Term Investment in MSC Software (equity-method investment) ............... $619,000
New Technology completed the following investment transactions during the year 2014:
Mar. 16 Purchased 2,000 shares of ATI Inc. as a long-term non-strategic investment, paying
$12.25 per share
May 21 Received cash of $0.75 per share on the ATI investment
Aug. 17 Received cash of $81,000 from MSC Software
Dec. 31 Received annual report from MSC Software. Net income for the year was $550,000. Of this amount, New Technology's proportion is 22%.
At year-end, the fair values of New Technology's investments are ATI, $25,700, and MSC, $700,000. The company reports any changes in fair value through net income.
Requirements
1. Record the transactions in the journal of New Technology Post entries to the T-account for Long-Term Investment in MSC and determine its balance at December 31, 2014.
3. Show how to report the Long-Term Non-strategic Investment and the Long-Term Investment in MSC accounts on New Technology's at December 31, 2014.
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