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Accounting for equity investments; 2 0 % - 5 0 % ownership Lynch Corporation owns 3 5 % of the outstanding common stock of Katherine
Accounting for equity investments; ownership
Lynch Corporation owns of the outstanding common stock of Katherine Interiors Inc.
a Explain how Lynch Corporation would account for its share of Katherine Interiors' net income of $
Lynch Corporation would record its $
share of Katherine Interiors Inc.s net income as an
to its investment account, Investment in Katherine Interiors Stock, and an
to Income of Katherine Interiors Inc.
b Explain how Lynch Corporation would account for the receipt of $ of dividends from Katherine Interiors Inc.
Lynch Corporation would record the receipt of $
as
to the investment account
and
to Cash. Accounting for equity investments; ownership
Lynch Corporation owns of the outstanding common stock of Katherine Interiors Inc.
a Explain how Lynch Corporation would account for its share of Katherine Interiors' net income of $
Lynch Corporation would record its $
share of Katherine Interiors Inc.s net income as an
to its investment account, Investment in Katherine Interiors Stock, and an
to Income of Katherine Interiors Inc.
b Explain how Lynch Corporation would account for the receipt of $ of dividends from Katherine Interiors Inc.
Lynch Corporation would record the receipt of $
as
to the investment account
and
to Cash.
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