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Question 12 Not yet answered Marked out of 1.00 Flag question Brown Co. acquired a 30% interest in Foreman, Inc. for $325,000 and appropriately applied
Question 12 Not yet answered Marked out of 1.00 Flag question Brown Co. acquired a 30% interest in Foreman, Inc. for $325,000 and appropriately applied the equity method. During the first year, Foreman, Inc. reported net income of $112,500 and paid cash dividends totaling $22,500. What amount will Brown report as it relates to the investment at the end of the first year on its income statement? Select one: a. Net investment earnings totaling $30,000 b. Investment earnings totaling $63,000 c. Receipt of dividends totaling $6,750 d. Investment earnings totaling $33,750
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