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Hi anyone can Help me. Q2. a) Microsoft owns equity-method investments in several companies. Suppose Microsoft paid $1,000,000 to acquire a 25% investment in Sun
Hi anyone can Help me.
Q2. a) Microsoft owns equity-method investments in several companies. Suppose Microsoft paid $1,000,000 to acquire a 25% investment in Sun - Software Company. Sun - Software reported net income of $640,000 for the first year and declared and paid cash dividends of $420,000. i) Record the following in Microsoft's journal: (a) Purchase of the investment, (b) Microsoft's proportion of Sun Software's net income (c) Receipt of the cash dividends. ii) What is the ending balance in Microsoft's investment account? TTStep by Step Solution
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