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Required information [The following information applies to the questions displayed below.] Lisa Company had outstanding 60,000 shares of common stock. On January 10, 2021, Marg

image text in transcribed Required information [The following information applies to the questions displayed below.] Lisa Company had outstanding 60,000 shares of common stock. On January 10, 2021, Marg Company purchased a block of these shares in the open market at $12 per share. At the end of 2021, Lisa reported net income of $150,000 and cash dividends of $0.30 per share. At December 31, 2021, Lisa Company stock was selling at $9 per share. Required: 1-a. Identify the method of accounting that Marg Company should use for purchasing 8,400 shares (Case A). The Fair Value Method The Equity Method 1-b. Identify the method of accounting that Marg Company should use for purchasing 16,800 shares (Case B). The Fair Value Method The Equity Method

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