Question
Alibaba Group Holding Limited acquired 20% of the outstanding common stock of JD.com, Inc. for $2,000,000. JD.com, Inc. reported a net income of $6,000,000 for
Alibaba Group Holding Limited acquired 20% of the outstanding common stock of JD.com, Inc. for $2,000,000. JD.com, Inc. reported a net income of $6,000,000 for the year. Calculate Alibaba Group Holding Limited's share of income from its investment in JD.com, Inc. using the equity method. Also, record the journal entry to recognize this share of income.
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Managerial Accounting for Managers
Authors: Eric Noreen, Peter Brewer, Ray Garrison
4th edition
1259578542, 978-1259578540
