Question: Assume the same facts as in Q11 16 Net assets
Assume the same facts as in Q11- 16. Net assets that were undervalued at acqui-sition have a remaining estimated life of 10 years ( assume no residual value and straight- line depreciation). There is no goodwill impairment. How much invest-ment revenue would Company R report using the equity method if Company S reported $ 80,000 of earnings after one year of ownership?
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