Business, 06.05.2020 18:09 24lbriscoe

Suppose that on January 6, 2016, Westfall Motors paid $360,000,000 for its 40% investment in Phase Motors. Assume Phase earned net income of $20,000,000 and paid cash dividends of $25,000,000 to all outstanding stockholders during 2016. (Assume all outstanding stock is voting stock.) What method should Westfall Motors use to account for the investment in: Motors? Give your reasoning. Journalize all required 2016 transactions related to Westfall Motors's Phase investment. Include an explanation for each entry. Post all 2016 transactions to the investment T-account. What is its balance after all the transactions are posted? How would this balance be classified on the balance sheet dated December 31, 2016?

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Suppose that on January 6, 2016, Westfall Motors paid $360,000,000 for its 40% investment in Phase M...

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