Question
Gibson Inc. acquired a 28% interest in Sullivan Co. on January 1, 2021, for $320,000. During 2021, Sullivan reported net income of $184,000, and paid
Gibson Inc. acquired a 28% interest in Sullivan Co. on January 1, 2021, for $320,000. During 2021, Sullivan reported net income of $184,000, and paid a total cash dividend to shareholders in the amount of $48,000. Gibson uses the equity method to account for this investment. At the end of 2021, Gibson will report the following debit balance in the investment account:
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Payroll Accounting 2016
Authors: Bernard J. Bieg, Judith Toland
26th edition
978-1305665910, 1305665910, 1337072648, 978-1337072649
