t2 482 - 1(12pts , (A)(B)(C)(D)(1)Dividend

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1. (12 pts.) For each of the following numbered situations below, select the best letter answer concerning  accounting for investments: (A.) Increase the investment account. (B.) Decrease the investment account. (C.) Increase dividend revenue. (D.) No adjustment necessary. (1.) Dividends received from 40% investee. (2.) Income reported by 10% owned investee. (3.) Loss reported by 10% investee. (4.) Loss reported by 40% owned investee. (5.) Change from fair-value method to equity method. Prior income was less than dividends. (6.) Change from fair-value method to equity method. Prior income was exceeded dividends. (7.) Change from equity method to fair-value method. Prior income exceeded dividends. (8.) Change from equity method to fair-value method. Prior income was less than dividends. (9.) Income reported by 40% owned investee. (10.) Dividends received from 10% investee. (11.) Purchase of additional shares of investee. (12.) Unrealized ending intra-entity inventory profits using the equity method.    2. (10 pts.) Mike Co. owns 30% of the voting common stock of Turf Services Inc. Charlie uses the equity method to  account for its investment. On January 1, 2013, the balance in the investment account was $624,000. During  2013, Turf Services reported net income of $120,000 and paid dividends of $30,000. What is the balance in the  investment account as of December 31, 2013?         
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3. (14 pts.) 
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