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Section 4: (This section has two parts.) Part 1: Assessing Financial statement Effects of tnvestments Thermopolis industries acquired common stock of Riverton, Inc, as an
Section 4: (This section has two parts.) Part 1: Assessing Financial statement Effects of tnvestments Thermopolis industries acquired common stock of Riverton, Inc, as an investment. Consider the following transactions. 2018: - Purchase 4,000(15%) of the common shares of Riverton, inc. for $20.40 cash per share. - Riverton reports net income of $118,200. - Thermopolis receives a cash dividend of $2.28 per share from Riverton, Inc. - Year-end market price of Riverton is $21.60 per share Complete the table below to show what Thermopolis Industries would report on its balance sheet and on its income statement in 2018 if the investment is classified as a passive investment in marketable equity securities, or as an equity method investment
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