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B C D E G Problem #3. (5 pts) Pio Corp. paid $900,000 cash for a 25% interest in Helena Corp.'s common stock on July
B C D E G Problem #3. (5 pts) Pio Corp. paid $900,000 cash for a 25% interest in Helena Corp.'s common stock on July 1, 2020, but was NOT able to exercise significant influence over Helena. During 2020, Pio reported income of $800,000 excluding its income from Helena. Helena reported net income of $100,000 during 2020 and paid dividends of $80,000 on September 1, 2020. Required (SHOW ALL YOUR WORK-Points will be deducted if insufficient work shown): (1 pt) Which accounting method should Pio Corp. use for its acquisition of Helena Corp? (4 pts) Calculate Dividend Income at year-end and ending balance of Investment in Helena, both after the year-end djustments are made, on Pio Corp.'s books
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