Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On December 31, 2020, Ryan Corp. acquired a 40% interest in Gosling Corp. for $ 315,000. During 2021, Gosling reported net income of $ 200,000
On December 31, 2020, Ryan Corp. acquired a 40% interest in Gosling Corp. for $ 315,000. During 2021, Gosling reported net income of $ 200,000 and paid total cash dividends of $ 50,000. Assuming Ryan uses the equity method, at December 31, 2021, the balance in the investment account should be?
On December 31, 2020, Ryan Corp. acquired a 40%
interest in Gosling Corp. for $ 315,000. During 2021,
Gosling reported net income of $ 200,000 and paid total
cash dividends of $ 50,000. Assuming Ryan uses the
equity method, at December 31, 2021, the balance in the
investment account should be?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started