Question
Parent Co. invested $1,071,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 45% of net income in dividends each year.
Parent Co. invested $1,071,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 45% of net income in dividends each year. Use the information in the following T-account for the investment in Sub to answer the following questions.
| Investment in Sub Co. | |
| 1,071,000 | |
| 147,800 | |
| 66,510 | |
(a) How much was Parent Co.
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Fundamentals Of Oil And Gas Accounting
Authors: Rebecca A. Gallun, Ph.D. Wright, Charlotte J, Linda M. Nichols, John W. Stevenson
4th Edition
0878147934, 9780878147939
