On 2017-02-01, P purchased 27% of the outstanding shares of TORT common stock for $65,195 ....
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• On 2017-02-01, P purchased 27% of the outstanding shares of TORT common stock for $65,195 . P accounted for the investment using the equity method . On 2017-07-15, P received a cash dividend of $9,779.25 from TORT • On 2017-12-31, TORT reported net income of $43,463.33. Record P's share. . For the year ending 2017-12-31 indicate effects on statements. If there is no effect for an account, put O as the amount. Comprehensive Income Statement NET INCOME Unrealized gain (loss) on available for sale securities TOTAL COMPREHENSIVE INCOME Balance Sheet Cash Marketable securities Equity method investments TOTAL ASSETS Retained earnings Accumulated other comprehensive income TOTAL SHAREHOLDERS' EQUITY Effect Effect • On 2017-02-01, P purchased 27% of the outstanding shares of TORT common stock for $65,195 . P accounted for the investment using the equity method . On 2017-07-15, P received a cash dividend of $9,779.25 from TORT • On 2017-12-31, TORT reported net income of $43,463.33. Record P's share. . For the year ending 2017-12-31 indicate effects on statements. If there is no effect for an account, put O as the amount. Comprehensive Income Statement NET INCOME Unrealized gain (loss) on available for sale securities TOTAL COMPREHENSIVE INCOME Balance Sheet Cash Marketable securities Equity method investments TOTAL ASSETS Retained earnings Accumulated other comprehensive income TOTAL SHAREHOLDERS' EQUITY Effect Effect
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Answer Solution The Equity Method is used when the investor has a significant degree of control betw... View the full answer
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119497042
12th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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