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Assume a firm buys 35% of the stock of another company for $1,000 at the beginning of Year 1. The market value of the investment
Assume a firm buys 35% of the stock of another company for $1,000 at the beginning of Year 1. The market value of the investment at the end of Year 1 is $1,800 and the investee's earnings for Year 1 are $5,000. What is the effect on the investing firm's (investor) net income for Year 1?
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