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Use the following example to describe the equity method ( 12 points ) Presume that Company A bought 30% of Company Bs outstanding common stocks
- Use the following example to describe the equity method (12 points)
Presume that
- Company A bought 30% of Company Bs outstanding common stocks at $400,000 (cash) on 01/01/2020
- During 2020, Company B earned net income of $200,000 and paid dividends of $40,000
Provide the journal entries for this equity investment in fiscal year 2020
What is the balance for this equity investment on 12/31/2020?
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Cost Accounting With Integrated Data Analytics
Authors: Karen Congo Farmer, Amy Fredin
1st Edition
1119731860, 9781119731863
