Explain how a long term investment by Paolo Company in Sanri Company affects the income statement and balance sheet of Paolo Company if (a) Paolo owns less than 20 percent of Sanri (b) Paolo owns between 20 percent and 50 percent of Sanri (c) Paolo owns more than 50 percent of Sanri ...

a Less than 20 ownership Income Statement Dividends received from Sanri are recorded as revenues Bal ...

Explain how a long-term investment by Paolo Company in Sanri Company affects the income statement and balance

Question:

Explain how a long-term investment by Paolo Company in Sanri Company affects the income statement and of Paolo Company if:
(a) Paolo owns less than 20 percent of Sanri.
(b) Paolo owns between 20 percent and 50 percent of Sanri.
(c) Paolo owns more than 50 percent of Sanri.
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...