Gant Company purchased 20 percent of the outstanding shares of Temp Company for $83,000 on January 1, 20X6. The following results are reported for Temp Company: 20X6 20X7 20X8
Net income $ 48,000 $ 43,000 $ 57,000
Dividends paid 12,000 27,000 17,000
Fair value of shares held by Gant:
January 1 83,000 102,000 99,000
December 31 102,000 99,000 110,000
Required:Determine the amounts reported by Gant as income from its investment in Temp for each year and the balance in Gant’s investment in Temp at the end of each year assuming that Gant uses the following methods in accounting for its investment in Temp:.a. Cost method. b. Equity method. c. Fair value method.

Solomon chemical company makes three products, b7, k6, and x9, which are joint products from the same materials. in a standard batch of 320,000 pounds of raw materials, the company generates 70,000 pounds of b7, 150,000 pounds of k6, and 100,000 pounds of x9. a standard batch costs $3,840,000 to produce. the sales prices per pound are $10, $14, and $20 for b7, k6, and x9, respectively. (a) allocate the joint product cost among the three final products using weight as the allocation base. (b) allocate the joint product cost among the three final products using market value as the allocation base. (c) allocate the joint product cost among the three final products using weight as the allocation base.