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Felicia Company acquired 20,000 of the 50,000 shares of outstanding common stock of Nueces Corporation as a long-term investment. The annual accounting period for both
Felicia Company acquired 20,000 of the 50,000 shares of outstanding common stock of Nueces Corporation as a long-term investment. The annual accounting period for both companies ends December 31. The following transactions occurred during the year: January 10 Purchased 20,000 shares of Nueces common stock at $17 per share. December 31 Nueces Corporation reported net income of $99,000. December 31 Nueces Corporation declared and paid a cash dividend of $0.40 per share. December 31 Determined the fair value of Nueces stock to be $16 per share. ED-1 (Algo) Part 3 Show how the long-term investment and the related revenue should be reported on the financial statements of Felicia Compa
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