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f White Inc. acquired a 30% interest in Lavender Ltd. on January 1, 2020 for $90,000, and during 2020 Lavender reported net income of $50,000
f White Inc. acquired a 30% interest in Lavender Ltd. on January 1, 2020 for $90,000, and during 2020 Lavender reported net income of $50,000 and paid a total cash dividend of $20,000. White reported Net Income of $125,000 and paid not dividends. Applying the equity method would result in an increase (decrease) to Whites Investment in Lavender Ltd. account for 2020 of
$50,000. | ||
$(20,000). | ||
$9,000. | ||
$30,000. |
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