On January 1, 2019, Poxx acquired 100% of Soxx’s outstanding common stock. For 2019, Soxx reported $200,000 of net income and declared dividends of $150,000. The amortization of cost in excess of book value for 2019 was $20,000. Poxx opted to use 

1). The equity method and 

2). Non-push-down accounting. 

What are Soxx’s true earnings for 2019 from Poxx’s perspective?

Answer rating: 100% (QA)

To record equity method income Investment in Soxx 200000 Investment Income 200000 T... View the full answer