On March 31, Year 1, Big Ltd. purchased 1,500 (15% ownership) of the shares of Small...

On March 31, Year 1, Big Ltd. purchased 1,500 (15% ownership) of the shares of Small Ltd. at a price of $10 per share. On December 31, Year 1, Big’s year-end date, Small paid a dividend of $0.50 per share and reported net income for the year of $25,000, which was earned evenly over the year. On December 31, Year 1, the Small shares had a fair value of $14 per share. Required: Provide all journal entries to be made by Big on March 31 and December 31, Year 1, assuming the investment in Small was to be accounted for using the: a. Equity method b. Fair value through net income model c. Fair value through other comprehensive income model

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