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Q3: Alternative methods for investment Lindner Co. decided to use the initial value method to account for its investment in Rox Corp. An unamortized trademark
Q3: Alternative methods for investment Lindner Co. decided to use the initial value method to account for its investment in Rox Corp. An unamortized trademark associated with the acquisition was $30,000, and Lindner decided to amortize the trademark over ten years. For 2018, Rox pad dividend was $32,000. Rox Corp's income for 2018 was $78,000. What balance would have been in the Equity in Subsidiary Earnings account if Lindner had used the equity method? a. 78,000-(30,000/10)=75,000 What balance would have been in the Equity in Subsidiary Earnings account if Lindner had used the partial equity method? a. What balance would have been if Lindner had used the initial value method
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