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EQUITY METHOD Company A buys 40% of company B for 400000$ in 2016 B recognized 300000$...

EQUITY METHOD

Company A buys 40% of company B for 400000$

in 2016 B recognized 300000$ of Net Income and distributed 150000$ of Dividends

In 2017 B recognized a Net Loss of 120000$ and issued Bonds of 60000$

In 2018 B recognized a Net loss of 60000$ and A sells 1/4 of the Investment for 110000$

a)Compute the carrying value of the investment after each year end(2016,2017,2018) showing the accounting entries

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