2. Accounting
3. on 112015 choco paid 150000 to acquire 15 of the...

# Question: on 112015 choco paid 150000 to acquire 15 of the...

###### Question details
1. On 1/1/2015, Choco paid $150,000 to acquire 15% of the voting common stock of Cookie. Following is the financial information about Cookie.  Book value of assets$450,000 Book value of liabilities $125,000 Net income (2015)$80,000 Dividends (2015) $40,000 Fair market value of investment 1/1/2015 Fair market value of investment 12/31/2015$160,000 $180,000 Cookie has a patent with book value of$5,000 but actually \$25,000 with 8 years remaining life.

Q1: What method should be used to record this investment?

Q2: What is the balance of the investment account in Cookie at 12/31/2015?

Q3: What is the journal entry to record for dividends paid by Cookie?