Question
On January 1 2010 harris pays 300,000 for 6,000 shares of horton, representing a 25% ownership. Harris has significant influence. During 2010, Horton earns $200,000
On January 1 2010 harris pays 300,000 for 6,000 shares of horton, representing a 25% ownership. Harris has significant influence. During 2010, Horton earns $200,000 and pays dividends of $2 per share. Harris has net income of $500,000 and pays dividends of $300,000 in 2010. Answer the Following:
A. How much equity income is recorded by Harris in 2010.
B. What is the balance in the Investment in Hortonfound on harris books at December 31, 2010.
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Financial Accounting Cases
Authors: Camillo Lento, Jo-Anne Ryan
3rd Canadian Edition
1119594642, 978-1119594642
