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The beginning balance sheet of Landeau Corporation included the following Equity-method Investment in NEW Software $614000 Landeau Corporation completed the following

The beginning balance sheet of Landeau Corporation included the following: Equity-method Investment in NEW Software ........................... $614,000 Landeau Corporation completed the following investment transactions during the year: Mar 16 .......... Purchased 2,200 shares of Hubbardston, Inc., common stock as a long-term available-for-sale investment, paying $12.00 per share. May 21 ......Received cash dividend of $2.50 per share on the Hubbardston investment. Aug 17......Received cash dividend of $85,000 from NEW Software. Dec 31 Received annual reports from NEW Software; net income for the year was $550,000. Of this amount, Landeau s proportion is 26%. At year-end, the fair values of Landeau Corporation s investments are as follows: Hubbardston, $26,600; NEW, $745,000? Requirements 1. Record the transactions in the journal of Landeau Corporation? 2. Post entries to the T-account for Equity-method Investment in NEW Software, and determine its balance at December 31? 3. Show how to report the Investment in Available-for-Sale Securities and the Equity-method Investment in NEW Software accounts on Landeau Corporation s balance sheet at December 31?

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