A company A pays $1,000,000 for 30% of the voting stock of Company B in 2020. In

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A company A pays $1,000,000 for 30% of the voting stock of Company B in 2020.

In 2020, B reports net income of $500,000 and dividends of $75,000.

In 2021, B reports net income of $300,000 and dividends of $100,000.

What does Company A record the investment and how does it adjust it on balance sheet?

What does Company A report on the balance sheet for its investment in B at the end of 2021?

Related Book For answer-question

Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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Posted Date: Dec 12, 2022 06:00 AM

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A company A pays $1,000,000 for 30% of the voting stock of Company B in 2020. In

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Advanced Accounting

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