On July 1, Year 1, midway into the year, Investor Corp. purchased 30% of the stock...

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On July 1, Year 1, midway into the year, Investor Corp. purchased 30% of the stock of Investee Co. and uses the equity method of accounting, for year 1 Investee paid a total of $80,000 in dividends to all of its shareholders. Investee Co. reported total net income for Year 1 of $240,000, earned evenly throughout the entire year. In its Year 1 income statement, what amount of income from this investment should Investor Corp. report? On July 1, Year 1, midway into the year, Investor Corp. purchased 30% of the stock of Investee Co. and uses the equity method of accounting, for year 1 Investee paid a total of $80,000 in dividends to all of its shareholders. Investee Co. reported total net income for Year 1 of $240,000, earned evenly throughout the entire year. In its Year 1 income statement, what amount of income from this investment should Investor Corp. report?

Answer rating: 100% (QA)

Invest or Corp should report 72 000 of income from t... View the full answer