On April 30, 20X4, Large Inc. established a subsidiary known as Small Inc. Large invested $ 500,000
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a) Determine the amount of Small Inc. s earnings that will be reported as investment income by Large Inc. in 20X7, under the equity method.
b) Calculate the balance of the investment in Small Inc. account on Large Inc. s books at December 31, 20X7, assuming that Large Inc. maintains the investment account on the equitybasis.
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Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
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