Anzelmo Corporation invested in Jones Manufacturing by purchasing a 10% interest in the company. Anzelmo had no
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Anzelmo Corporation invested in Jones Manufacturing by purchasing a 10% interest in the company. Anzelmo had no significant influence in Jones. Over time, Anzelmo acquired more shares inJones, and in 2016, Anzelmo's president became a member of the board of directors when its ownership interest reached 30% of Jones. The cost basis of its investment is $2,000,000. Under the equity method, the valuation of the investment would be$2,400,000. The fair value of the investment is $2,600,000.
What is the amount of the adjustment to the investment account necessary to properly record the change in accounting principal?
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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