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UVW Ltd. acquired a 15% stake in XYZ Corp. for $150,000 on January 1st, 2023. XYZ Corp. reported net income of $50,000 for the year
UVW Ltd. acquired a 15% stake in XYZ Corp. for $150,000 on January 1st, 2023. XYZ Corp. reported net income of $50,000 for the year ended December 31st, 2023. Calculate: a) UVW Ltd.'s share of income from its investment in XYZ Corp. for the year. b) Equity method investment balance at the end of the year. c) Percentage ownership in XYZ Corp. at the end of the year. d) Journal entry to record recognition of income from the investment.
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