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Help please Facts: On January 1, 2020 ABC purchased 17,000 shares of XYZ common shares at purchase price of $17 per share. The ownership of
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Facts: On January 1, 2020 ABC purchased 17,000 shares of XYZ common shares at purchase price of $17 per share. The ownership of 17,000 shares gives ABC a 31% ownership stake in XYZ, which is sufficient to give ABC significant influence over the operations of XYZ. The fiscal year of ABC ends on December 31. XYZ's GAAP financials reported total net income of $ for calendar year 2020. During that year, XYZ declared and paid of S2 /share on June 30 and December 31st. ABC received the June 30 dividend on July 1, 2020 and received the December 31 dividend payment on January 2, 2021. XYZ common stock, which is traded on the New York Stock Exchange, closed at $19 per share on December 31, 2020. The book value equaled the market value of all asset and liabilities reported on the XYZ balance sheet at January 1, 2020. ABC reported the investment in XYZ common stock in the asset section of ABC's December 31, 2020 balance sheet at $244,069 All questions below pertain to the accounting for the investment by ABC. Required: 83. What was XYZ's net income for 2020 Step by Step Solution
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