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E17-12 (Journal Entries for Fair Value and Equity Methods)Presented below are tw

E17-12 (Journal Entries for Fair Value and Equity Methods)Presented below are two independent situations. Prepare all necessary journal entries in 2010 for each situation. Situation 1Hatcher Cosmetics acquired 10% of the 200,000 shares of common stock of Ramirez Fashion at a total cost of $14 per share on March 18, 2010. On June 30, Ramirez declared and paid a $75,000 cash dividend. On December 31, Ramirez reported net income of $122,000 for the year. At December 31, the market price of Ramirez Fashion was $15 per share. The securities are classified as available-for-sale. Date Description/Account Debit Credit Situation 2Holmes, Inc. obtained significant influence over Nadal Corporation by buying 25% of Nadal’s 30,000 outstanding shares of common stock at a total cost of $9 per share on January 1, 2010. On June 15, Nadal declared and paid a cash dividend of $36,000. On December 31, Nadal reported a net income of $85,000 for the year. Date Description/Account Debit Credit Click here if you would like to Show Work for this question

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