Accounting for available-for-sale-equity-method investment

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Reference no: EM131126716

(Learning Objective 1, 2: Accounting for available-for-sale and equity-method investments) The beginning balance sheet of NASDOQ Corporation included the following:

Long-Term Investment in MSC Software (equity-method investment)

$619,000

NASDOQ completed the following investment transactions during the year:

Mar.16	Purchased 2,000 shares of ATI, Inc., common stock as a longterm available-for -sale investment, paying $12.25 per share.
May.21	Received cash dividend of $0.75 per share on the ATI investment.
Aug. 17	Received cash dividend of $81,000 from MSC Software.
Dec. 31	Received annual report from MSC Software; net income for the year was $550,000. Of this amount, NASDOQ's proportion is 22%.

Required

1. Record the transactions in the journal of NASDOQ Corporation.

2. Post entries to the T-account for Long-Term Investment in MSC and determine its balance at December 31.

3. Show how to report the Long-Term Available-for-Sale Investments and the Long-Term Investment in MSC accounts on NASDOQ's balance sheet at December 31.

Reference no: EM131126716

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