On January 3, 2020, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor Co....

  

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On January 3, 2020, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor Co. for $2,800,000. This investment gave Baxter the ability to exercise significant influence over Anchor. Anchor's assets on that date were recorded at $11,700,000 with liabilities of $4,700,000. There were no other differences between book and fair values. During 2020, Anchor reported net income of $600,000. For 2021, Anchor reported net income of $900,000. Dividends of $350,000 were paid in each of these two years. How much income did Baxter report from Anchor for 2021? Multiple Choice $150,000. O $220,000. $240,000. O $360,000. $600,000. On January 3, 2020, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor Co. for $2,800,000. This investment gave Baxter the ability to exercise significant influence over Anchor. Anchor's assets on that date were recorded at $11,700,000 with liabilities of $4,700,000. There were no other differences between book and fair values. During 2020, Anchor reported net income of $600,000. For 2021, Anchor reported net income of $900,000. Dividends of $350,000 were paid in each of these two years. How much income did Baxter report from Anchor for 2021? Multiple Choice $150,000. O $220,000. $240,000. O $360,000. $600,000.

Answer rating: 100% (QA)

Correct option is D360000 INCOME Baxter would report from Anchor in 2021 SHare in net inco... View the full answer