For the year ended on December 31, 2010, XYZ had net income of $90,000 and paid dividends of $40,000. Prepare the journal entries to record the result using EQUITY METHOD of accounting. Show your calculation for the adjustments of net income.
The BV-FV difference in Plant Assets is as follows:
Land...............................$60,000
Building (20-yr life)..........80,000
Machinery (5-yr life).........50,000
Total.............................190,000