Century Corporation acquired 8,400 common shares of Fidelity Company on January 10, 2012, for $12 per share and acquired 15,000 common shares of Essem Corporation on January 25, 2012, for $22 per share. Fidelity has 60,000 shares of common stock outstanding, and Essem has 50,000 shares outstanding. At December 31, 2012, the following information was obtained about the operations of Fidelity and Essem: Assume that Century exerted significant influence over the policies of Essem, but influenced the policies of Fidelity only to a very limited extent. Century classified its investment in Fidelity as an available-for-sale security. Required: 1. How should Century account for its investments in Essem? 2. Prepare the journal entries for each investment for the year 2012 using the method or methods you selected in part (1) for Essem.

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.