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Q4. (20 marks) Call Corporation purchased 225,000 shares of Nex Corporation on January 1, 2017, for $540,000. Nex Corporation has 600,000 shares outstanding. Nex Corporation

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Q4. (20 marks) Call Corporation purchased 225,000 shares of Nex Corporation on January 1, 2017, for $540,000. Nex Corporation has 600,000 shares outstanding. Nex Corporation earned net income of $360,000 and paid dividends of $106,000 during 2017, Required: a. What method should be used to account for the Nex Corporation investment? b.How much revenue will be recorded by PET Corporation in 2015 from its investment in SOX Corporation? c. What is the balance in Call investment account at the end of 2015

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