Question: Problem 6 - 3 6 ( Algo ) ( LO 6 - 7 ) DeMilo, Incorporated, owns 1 0 0 percent of the 4 4

Problem 6-36(Algo)(LO 6-7)
DeMilo, Incorporated, owns 100 percent of the 44,000 outstanding shares of Ricardo, Incorporated. DeMilo currently carries the
Investment in Ricardo account at $345,600 using the equity method.
Ricardo issues 6,000 new shares to the public for $15.25 per share.
Required:
How does this transaction affect the Investment in Ricardo account that appears on DeMilo's financial records?
Investment in Ricardo should be
by
Problem 6-36(Algo)(LO 6-7) DeMilo, Incorporated, owns 100 percent of the 44,000

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