Question
STUInc.acquireda15%stakeinVWXLtdfor$150,000onJanuary1st,2023.VWX Ltd reported net income of $40,000 for the year ended December 31st, 2023. Calculate: a)STUInc.'sshareofincomefromitsinvestmentinVWXLtdfortheyear.b)Equity method investment balance at the end of the year.
STU Inc. acquired a 15% stake in VWX Ltd for $150,000 on January 1st, 2023. VWX Ltd reported net income of $40,000 for the year ended December 31st, 2023. Calculate:
a) STU Inc.'s share of income from its investment in VWX Ltd for the year. b) Equity method investment balance at the end of the year. c) Journal entry to record the recognition of income from the investment.
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Survey of Accounting
Authors: Thomas Edmonds, Christopher Edmonds, Philip Olds, Frances McNair, Bor Yi Tsay
5th edition
1259631125, 978-1259631122
