Question
Please help with this exercise, greatly thanks if you could do in in details so that i can understand how the numbers come from. The
Please help with this exercise, greatly thanks if you could do in in details so that i can understand how the numbers come from.
The investor Comedy acquires a 30% interest in mother Co. Drama for $800,000
Assume that the investor has the ability to significantly influence the investee
2014: Drama report net losses of $240,000 and issued bonds for $120,000
2015: Drama report net income of $600,000 and pays dividend for $300,000
2016: Drama reports net losses of $120, 000. At the end of the year, Comedy sells one fourth of its investment in Drama for $200,000
Determine of the value of the investment at the end of each year
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