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King Corp. owns 8 0 % of Kong Corp. and uses the cost method to account for its investment, which it acquired on January 1
King Corp. owns of Kong Corp. and uses the cost method to account for its investment, which it acquired on January The Financial Statements of King Corp. and Kong Corp. for the Year ended December are shown below:
Income Statements
King Corp. Kong Corp.
Sales $ $
Other Revenues $ $
Less: Expenses
Cost of Goods Sold $ $
Depreciation Expense $ $
Other Expenses $ $
Income Tax Expense $ $
Net Income $ $
Retained Earnings Statements
King Corp. Kong Corp.
Balance, January $ $
Net Income $ $
Less: Dividends $$
Retained Earnings $ $
Balance Sheets
King Corp. Kong Corp.
Cash $ $
Accounts Receivable $ $
Inventory $ $
Investment in Kong Corp. $
Land $
Equipment $ $
Accumulated Depreciation $$
Total Assets $ $
Current Liabilities $ $
Dividends Payable $ $
Common Shares $ $
Retained Earnings $ $
Total Liabilities and Equity $ $
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