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Brankov Company purchased common stock in Ramona Company for dollar400,000. In the current year, Ramona Company reported net income of dollar50,000 and paid a dividend
Brankov Company purchased common stock in Ramona Company for dollar400,000. In the current year, Ramona Company reported net income of dollar50,000 and paid a dividend of dollar32,000. At the end of the year, the market value of the investment in Ramona Company was dollar410,000. A) Assume Brankov Company owns 10percentage of the shares of Ramona Company. Brankov Company considers the investment to be available-for-sale securities. Show the effects of the transactions above on the accounts of Brankov Company using the balance sheet equation. B Assume Brankov Company owns 25percentage of the shares of Ramona Company. Show the effects of the transactions above on the accounts of Brankov Company using the balance sheet equation
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