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Drop Down menu for the Equity-method Investment T- Chart: Dividends, Net Income, Purchase, Sale, Unrealized Gain, Unrealized Loss. At the bottom of the T- Chart
Drop Down menu for the Equity-method Investment T- Chart: Dividends, Net Income, Purchase, Sale, Unrealized Gain, Unrealized Loss. At the bottom of the T- Chart the drop down is Balance.
Nelson Corporation owns equity-method investments in several companies. Nelson paid $1,500,000 to acquire a 25% investment in Simpson Software Company. Simpson reported net income of $600,000 for the first year and declared and paid cash dividends of $450,000. Without making journal entries, record the investment transactions directly in the Nelson T-account, Equity-method Investment. Assume that after all the noted transactions took place, Nelson sold its entire investment in Simpson for cash of $2,700,000. How much is Nelson's gain or loss on the sale of the investment? Post the investment transactions and determine the balance in Nelson's T-account for Equity-method Investment. Equity-method Investment Assume that after all the noted transactions took place, Nelson sold its entire investment in Simpson for cash of $2,700,000. How much is Nelson's gain or loss on the sale of the investment? If Nelson sold its entire investment in Simpson for cash of $2,700,000, it would record a l lof $Step by Step Solution
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