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The Stockton Company acquired a 25% interest in Fort Enterprises for $3,200,000 and appropriately applied the equity method. During the first year, Fort reported net
The Stockton Company acquired a 25% interest in Fort Enterprises for $3,200,000 and appropriately applied the equity method. During the first year, Fort reported net income of $424,000 and paid cash dividends totaling $40,000. What amount will The Stockton Company report regarding its Fort investment at the end of the first year on its Income Statement?
Investment earnings totaling $106,000 | ||
Investment earnings totaling $125,000 | ||
Net investment earnings totaling $96,000 | ||
Dividend income totaling $10,000 |
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