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on january 1, 2020, Dawn Co. acquired all of the common stock of Bob Corp. In 2020 Bob had net income of 750,000 and paid
on january 1, 2020, Dawn Co. acquired all of the common stock of Bob Corp. In 2020 Bob had net income of 750,000 and paid dividends of 400,000. Amortization of the patent allocation that was included in the acquisition was 24,000. If Dawn uses the equity method to account for its investments in Bob Corp., its income in 2020 would be higher/lower than if it used the partial equity method. *Note- The required answer is for Dawn stand-alone income statement, not the consolidated income statement.
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