On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1,
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On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1, Waterfall Inc. acquired an additional 20% Junior's common stock. No goodwill resulted from either purchase. Junior reported net incomes of $600,000 and $480,000 for 2XX0 and 2XX1, respectively. Dividends paid by Junior amounted to $330,000 in 2XX0 and $150,000 in 2020.
What amount of Equity Income should be reported by Waterfall Inc. in 2XX1?
Related Book For
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.
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