Question
STUInc.acquireda20%stakeinVWXLtdfor$200,000onJanuary1st,2023.VWX Ltd reported net income of $60,000 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 20% stake in VWX Ltd for $200,000 on January 1st, 2023. VWX Ltd reported net income of $60,000 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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Financial Accounting
Authors: Robert Kemp, Jeffrey Waybright
2nd edition
978-0132771801, 9780132771580, 132771802, 132771586, 978-0133052152
