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Rijo Corporation uses the equity method to account for its ownership of 30% of the common stock of Pippen Packing. During 2012, Pippen reported a net income of $80,000 and declares and pays cash dividends of $10,000. What recognition should Rijo Corporation give to these events?

Chapter 16, Questions #8

Rijo Corporation uses the equity method to account for its ownership of 30% of the common stock of Pippen Packing. During 2012, Pippen reported a net income of $80,000 and declares and pays cash dividends of $10,000. What recognition should Rijo Corporation give to these events?

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Accounting Principles

Accounting Principles

10th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

ISBN: 978-0470534793

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Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.

Answers for Questions in Chapter 16

Brief Exercises:
COMPREHENSIVE PROBLEM:
Continuing cookie chronicle:
DO IT! Review:
Exercises:
Financial Reporting Problem:
Problem Set A:
Problem Set B:
Questions:

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