Question
Company K acquired 30% of the outstanding common stock of Company L for $300,000. Company L reported a net income of $700,000 for the year.
ยท Company K acquired 30% of the outstanding common stock of Company L for $300,000. Company L reported a net income of $700,000 for the year. Calculate Company K's share of income from its investment in Company L using the equity method. Also, record the journal entry to recognize this share of income.
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Horngrens Accounting
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura, Carol A. Meissner, Jo Ann L. Johnston, Peter R. Norwood
10th Canadian edition Volume 1
978-0134213101, 134213106, 133855376, 978-0133855371
