Question
Orel Company purchased 300 of the 1,000 outstanding shares of Alam Companys common stock for $80,000 on January 2, 2019. During 2020, Alam Company declared
Orel Company purchased 300 of the 1,000 outstanding shares of Alam Companys common stock for $80,000 on January 2, 2019. During 2020, Alam Company declared dividends of $8,000 and reported earnings for the year of $20,000. If Orel Company uses the equity method of accounting for its investment in Alam Company, its Investment in Alam Company account at December 31, 2020 should be?
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Forensic And Investigative Accounting
Authors: Crumbley D. Larry, Fenton Edmund D., Jr. Smith G. Stevenson
9th Edition
0808053221, 9780808053224
