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Prepare three tables and determine the amounts reported by A Company as income from its investment in B Company for each year and the
Prepare three tables and determine the amounts reported by A Company as income from its investment in B Company for each year and the balance in A Company's investment in B Company at the end of each year using each of the three methods. Company A purchased 20 percent of the outstanding shares of B Company for $70,000 on January 1, 20X6. The following results are reported for Company B: 20X6 20X7 20X8 Net Income 20,000 15,000 30,000 Dividends paid 7,000 15,000 10,000 Fair value of shares held by Gant January 1 35,000 44,000 43,000 December 31 44,000 43,000 48,000
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