Question
On January 1, 2020, Brown Corporation purchased 10,000 shares of the outstanding voting common stock of Grizzly Company for $500,000. Grizzly has a total of
On January 1, 2020, Brown Corporation purchased 10,000 shares of the outstanding voting common stock of Grizzly Company for $500,000. Grizzly has a total of 40,000 shares issued and outstanding. For the year ended December 31, 2020, Grizzly reported net income of $225,000 and paid cash dividends of $40,000. What is the carrying value of Brown’s investment in Grizzly at December 31, 2020?
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SOLUTION Calculation of Share in net income of 10000 shares Grizzy repo...
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Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
