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Company Q acquired 1,200 shares of common stock in Company Y for $30 per share, representing a 30% ownership stake. Calculate the equity method investment


Company Q acquired 1,200 shares of common stock in Company Y for $30 per share, representing a 30% ownership stake. Calculate the equity method investment value and the share of Company Y's net income to be recorded by Company Q if Company Y reports net income of $60,000. Provide the journal entry for recording the equity method investment. Discuss the equity method of accounting for investments and its implications for financial reporting.

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