Matador Company reports net income of $150,000 each year and declares an annual cash dividend of...

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Matador Company reports net income of $150,000 each year and declares an annual cash dividend of $50,000. The company holds net assets of $1,800,000 on January 1, 2017. On that date, Zelzah purchases 30% of Matador's outstanding common stock for $900,000, which gives it the ability to significantly influence Matador. At the purchase date, the excess of Zelzah's cost over its proportionate share of Matador's book value was assigned to goodwill. On December 31, 2019, what is the Investment in Matador Company balance (in equity method) in Zelzah's financial records? Matador Company reports net income of $150,000 each year and declares an annual cash dividend of $50,000. The company holds net assets of $1,800,000 on January 1, 2017. On that date, Zelzah purchases 30% of Matador's outstanding common stock for $900,000, which gives it the ability to significantly influence Matador. At the purchase date, the excess of Zelzah's cost over its proportionate share of Matador's book value was assigned to goodwill. On December 31, 2019, what is the Investment in Matador Company balance (in equity method) in Zelzah's financial records?

Answer rating: 100% (QA)

To determine the Investment in Matador Company balance in Zelzahs financial records using the equity ... View the full answer