2. James Company carries the investment in Craft Company under the simple equity method. In general journal form, record the entries that would be made to apply the equity method in 2015 and 2016. 3....

2. James Company carries the investment in Craft Company under the simple equity method. In general journal form, record the entries that would be made to apply the equity method in 2015 and 2016.

3. Compute the balance that should appear in Investment in Craft Company and in Subsidiary Income on December 31, 2016 (the second year). Fill in these amounts on James Company’s trial balance on the worksheet for 2016.

4. Complete the worksheet for consolidated financial statements for 2016.