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Turner Company purchased 4 0 % of the outstanding stock in ICA Company for $ 1 0 , 0 0 0 , 0 0 0

Turner Company purchased

40 %

of the outstanding stock in ICA Company for $

10, 000, 000

on January

24, 2024 .

Turner uses the fair market value option to account for the investment. During

2024,

ICA paid $

5

million dollar cash dividend on common stock. IGNORE TAXES! What is the effect of the dividend on Turner

s financial statements. Explain.

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