Question
On January 1, 2022, Wildhorse Creek Company purchased 7,500 shares of Blossom Company stock for $470,000. Wildhorse Creek investment represents 30 percent of the total
On January 1, 2022, Wildhorse Creek Company purchased 7,500 shares of Blossom Company stock for $470,000. Wildhorse Creek investment represents 30 percent of the total outstanding shares of Blossom. During 2022, Blossom paid total dividends of $140,000 and reported net income of $220,000. What revenue does Wildhorse report related to this investment, and what is the amount to be reported as an investment in Blossom stock at December 31?
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Managerial Accounting An Introduction to Concepts Methods and Uses
Authors: Michael W. Maher, Clyde P. Stickney, Roman L. Weil
11th edition
1111571260, 978-1111571269
