Answer:
The statements are as shown in the solution.
Explanation:
As the question is not visible here, completely, the similar question is found online and is solved for these values. The method is as follows:
<u>For Income Statement</u>
Investment Revenue(Share of Income) is calculated as
Here
IR is the investment revenue which is to be calculated
E_reported are the reported earnings which is $51 million
Shares are given as 1 million.
Outstanding shares are given as 6 million
Solving for IR gives
Patent Amortization is calculated as
Here
PA is the patent amortization value which is to be calculated
P_value is the value of patent which is $30 million
Shares are given as 1 million.
Outstanding shares are given as 6 million
Years is the period of 10 years.
Solving for PA gives
So the income statement is given as
Income Statement
1-Investment Revenue (Share of Revenue) | $8.5 Million
2-Patent Amortization Adjustment | ($0.5 Million)
-----------------------------------------------------------------------------------------
Net Income | $8.0 Million
<u> For Investment Statement</u>
Calculation of Dividend is given as
Here
Div is the investment entry for dividend which is to be calculated
E_reported are the reported earnings which is $3 million
Shares are given as 1 million.
Outstanding shares are given as 6 million
Now the statement of investment is given as
Investment in Company M shares
Date | Details | Debit ($ Million) | Date | Details | Credit($ Million)
2021 | | | 2021 | |
| Cost | 27 | | Dividend | 0.5
| Share (income) | 8.5 | | Patent | 0.5
----------------------------------------------------------------------------------------------------------------- a |Total | 35.5 | | Total | 1.0
____________________________________________________________
Balance : $ 34.5 Million
<u>For Statement of Cash Flows</u>
Statement of Cash Flows
For Year Ending December 31, 2021
Cash Flow from Operating Activities
Dividends | $ 0.5 Million
Cash Flow from Investing Activities
Purchase of investment | ($ 27 Million)
<u></u>
<h2 />