What method is used for investments in equity securities with 20% or more, but less than 50%, ownership? Briefly describe how dividends declared and received and share of net income is reported.
Answer to relevant QuestionsWhat method is used for investments in equity securities with 50% or more ownership? Briefly describe this method.On January 1, 2014, the Gamekeeper’s Restaurant decides to invest in Lake Turner bonds. The bonds mature on December 31, 2018, and pay interest on June 30 and December 31 at 6% annually. The market rate of interest was 6% ...Mile Down & Co. owns vast amounts of corporate bonds. Suppose Mile Down buys $ 900,000 of CocoCorp bonds at face value on January 2, 2014. The CocoCorp bonds pay interest at the annual rate of 5% on June 30 and December 31 ...Suppose Hale and Sons purchases $ 800,000 of 5% annual bonds of McPhee Corporation at face value on January 1, 2014. These bonds pay interest on June 30 and December 31 each year. They mature on December 31, 2018. Hale ...Wild Adventure conducts tours of wildlife reserves around the world. The company recently purchased a lodge in Adelaide, Australia, securing a 4% mortgage from First Bank. In addition to monthly payments, Wild Adventure must ...
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