Question
On January 1, 2019, X Inc. purchased 30% of the voting shares of Y Inc. for $110,000. The investment is reported using the equity method.
On January 1, 2019, X Inc. purchased 30% of the voting shares of Y Inc. for $110,000. The investment is reported using the equity method. Y's net income and declared dividends for the following three years are as follows:
|
| Net Income | Dividends |
| 2019 | $50,000 | $20,000 |
| 2020 | $70,000 | $80,000 |
| 2021 | $30,000 | $60,000 |
What would be the carrying value of X's Investment in Y at the end of 2020?
What would be the carrying value of X's Investment in Y at the end of 2021?
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Financial Accounting A Practical Introduction
Authors: Ilias Basioudis
1st Edition
0273714295, 978-0273714293
