Question
Alphabet Inc. acquired 15% of the outstanding common stock of Tesla, Inc. for $500,000. Tesla, Inc. reported a net income of $2,000,000 for the year.
ยท Alphabet Inc. acquired 15% of the outstanding common stock of Tesla, Inc. for $500,000. Tesla, Inc. reported a net income of $2,000,000 for the year. Calculate Alphabet Inc.'s share of income from its investment in Tesla, Inc. using the equity method. Also, record the journal entry to recognize this share of income.
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Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
