Forest Company owns 40% of the common shares of Petal Incorporated. They purchased the shares at the beginning of the year for $350,000. The year end financial statements for Petal showed a loss of $50,000 and Flower also received dividends in the amount of $15,000. How much does Forest report on their income statement related to their investment in Petal for the year?

Answer rating: 100% (QA)

Forest Company uses the equity method of accounting for its investment in Petal Incorporate... View the full answer