Eastern Corporation purchased 225,000 Western Corporation common shares on January 2,2017,for $540,000.Western Corporation has 600,000 shares outstanding.Western Corporation earned net income of $360,000 and paid dividends of $100,000 during 2017.
a_What method should be used to account for the Western Corporation investment?
b_How much revenue will be recorded by Eastern Corporation in 2017 from its investment in Western Corporation?
c_What is the balance in Eastern Corporation's investment account at the end of 2017?
d_Assume all of the above facts except that on January 2,2017,Eastern Corporation purchased 90,000 shares of Western Corporation.How much revenue will be recorded by Eastern Corporation in 2017 from its investment in Western Corporation?

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The Answer of Eastern Corporation purchased 225,000 Western Corporation common shares on January 2,2017,for $540,000.Western Corporation has 600,000 shares outstanding.Western Corporation earned net income of $360,000 and paid dividends of $100,000 during 2017.
a_What method should be used to account for the Western Corporation investment?
b_How much revenue will be recorded by Eastern Corporation in 2017 from its investment in Western Corporation?
c_What is the balance in Eastern Corporation's investment account at the end of 2017?
d_Assume all of the above facts except that on January 2,2017,Eastern Corporation purchased 90,000 shares of Western Corporation.How much revenue will be recorded by Eastern Corporation in 2017 from its investment in Western Corporation?

Eastern Corporation Purchased 225,000 Western Corporation Common Shares on January