Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Crane Company purchased 300 of the 1000 outstanding shares of Swifty Company's common stock for $670000 on January 2, 2021. During 2021, Swifty Company declared
Crane Company purchased 300 of the 1000 outstanding shares of Swifty Company's common stock for $670000 on January 2, 2021. During 2021, Swifty Company declared dividends of $115000 and reported earnings for the year of $430000. If Crane Company uses the equity method of accounting for its investment in Swifty Company, its Equity Investments (Swifty) account at December 31, 2021 should be
$635500.
$764500.
$799000.
$670000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started