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During the current year, Johnson Corporation buys 30% of the stock in Rockford Industries for $100,000 and accounts for the investment under the equity method.
During the current year, Johnson Corporation buys 30% of the stock in Rockford Industries for $100,000 and accounts for the investment under the equity method. At the end of the current year, the selling price of Rockford Industries' stock drops by 10%. As a result of this stock selling price drop, Johnson Corporation would: Question 3Answer a. Recognize an unrealized holding loss as a separate component of stockholders' equity b. Recognize an unrealized holding loss on its income statement c. Make no entry d. None of the other answer choices are correct
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