(Answered) Problemfletcher inc acquired 25 of the outstanding common

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Fletcher Inc. acquired 25% of the outstanding common shares of Gregson Inc. on December 31, 2015. The purchase price was $1,250,000 for 62,500 shares. Gregson declared and paid a cash dividend of $.75 per share on June 15th and again on December 15th, 2016. Gregson reported net income of $520,000 for 2016. The fair value of Gregson's shares was $21 per share on December 31, 2016.

a) Prepare the journal entries for Fletcher for 2015 and 2016 assuming Fletcher cannot exercise significant influence over Gregson. The investment is accounted for using the FVOCI method.

b) Prepare the journal entries for Fletcher for 2015 and 2016 assuming Fletcher can exercise significant influence over Gregson.

c) What amount is reported for the investment in Gregson shares on the December 31, 2016 statement of financial position under each of the methods noted above.

d) What amount is reported on Fletch's statement of comprehensive income in 2016 under each of the methods above and where are these amounts reported?

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