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Prime industries acquired a 70% interest in suburbia co. by purchasing 14,000 of its 20,000 outstanding shares of common stock at a book value of
| Prime industries acquired a | 70% | interest in suburbia co. by purchasing | 14,000 | of its | 20,000 | outstanding | ||||||
| shares of common stock at a book value of $ | 210,000 | on January 1 ,2016. Surburbia reported a net income in 2016 of $ | ||||||||||
| 90,000 | and in 2107 of $ | 120,000 | earned evenly throughout the respective years. Prime received $ | 24,000 | dividends | |||||||
| from suburbia in 2016 and $ | 36,000 | in 2017. Prime uses the equity method to record its investment. | ||||||||||
| The balance of prime's investment in suburbia at December 31, 2017 is: | ||||||||||||
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
13th Edition
9780470374948, 470423684, 470374942, 978-0470423684
