ABC Company uses the equity method to account for its investment in DEF Co common stock. How should ABC record a 3% stock dividend received from DEF?

Greg Company owns 75% of George Company's common stock. During the 3rd quarter of the current year, George sold inventory to Greg for $100,000. At the end of the current year, half of this purchase remains in Greg's inventory. For the current year, Greg's gross profit margin was 25% and George's gross profit margin was 40%. How much unrealized profit should be eliminated from ending inventory at year-end?

Gerald Company purchased 30% of Randy Company's outstanding nonvoting preferred stock. How should this investment be recorded?

Which of the following, if received from an investee, will effect income reported by an investor using the equity method?

On January 1, Year 1, Parent Company buys 15% of Son Company for $300,000. Parent has the ability to assert significant influence over Son and does not elect the fair value method. During Year 1, Son reported net income of $160,000 and paid cash dividends of $25,000. What is the book value of Parent's investment in Son at the end of Year 1?

ABC Inc is currently using the equity method to account for its 25% investment in DEF Inc. In the acquisition last year of DEF stock, ABC calculated $750,000 of goodwill. The correct accounting for this goodwill during the current year is: