Response to the following questions:
1. a. What method of accounting is used for long-term investments in stock in which there is significant influence over the investee?
b. Under what caption are long-term investments in stock reported on the balance sheet?
2. An annual report of The Campbell Soup Company reported on its income statement $2.4 million as "equity in earnings of affiliates." Journalize the entry that Campbell would have made to record this equity in earnings of affiliates.