Question: Equity Method and Eliminating Entries, Second Year San Jose reported net income of $ 7 . 0 million in 2 0 2 3 , and

Equity Method and Eliminating Entries, Second Year
San Jose reported net income of $7.0 million in 2023, and paid no dividends. Playtel uses the complete equity method to report its investment in San Jose on its own books.
were $2.4 million, and goodwill was impaired by $1,440,000.
Note: Provide all answers in thousands.
a. Calculate equity in net income of San Jose for 2024, reported on Playtel's books
b. Calculate the December 31,2024, investment balance, reported on Playtel's books.
c. Prepare eliminating entries (C),(E),(R), and (O), required to consolidate Playtel's trial balance accounts with those of San Jose on December 31,2024.
Equity Method and Eliminating Entries, Second

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