2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company?* 青 O A) $137,500, $3,000,000 O B) $300,000, $3,162,500 C) $137,500; $2,300,000 D) None of the above.
2. Using the equity method, what is the investment income and the balance sheet investment account balance respectively for AXE company?* 青 O A) $137,500, $3,000,000 O B) $300,000, $3,162,500 C) $137,500; $2,300,000 D) None of the above.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
i want answer of question 2
![Suppose that AXE company acquires exactly 25% of the voting common stock of
Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer
company reports $1,200,000 earnings for the year in its net income and pays
$550,000 in cash dividends at the end of the year 2020.
1. Using the cost method, what is the investment income and the balance sheet
investment account balance respectively for AXE company?*
O A) $137,500, $3,000,000
B) $300,000; $3,162,500
O C) $137,500; $2,300,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F911101eb-c578-4165-99ed-1792a9b9d5c6%2F86811703-1f64-44c3-9064-8162e74ee39f%2Fepjuh5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose that AXE company acquires exactly 25% of the voting common stock of
Company SARDAR Inc. for $3,000,000 at the beginning of the year 2020. Pfizer
company reports $1,200,000 earnings for the year in its net income and pays
$550,000 in cash dividends at the end of the year 2020.
1. Using the cost method, what is the investment income and the balance sheet
investment account balance respectively for AXE company?*
O A) $137,500, $3,000,000
B) $300,000; $3,162,500
O C) $137,500; $2,300,000
![D) None of the above.
2. Using the equity method, what is the investment income and the balance
sheet investment account balance respectively for AXE company?
O A) $137,500, $3,000,000
O B) $300,000, $3,162,500
C) $137,500; $2,300,000
D) None of the above,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F911101eb-c578-4165-99ed-1792a9b9d5c6%2F86811703-1f64-44c3-9064-8162e74ee39f%2Fbnqnktr_processed.jpeg&w=3840&q=75)
Transcribed Image Text:D) None of the above.
2. Using the equity method, what is the investment income and the balance
sheet investment account balance respectively for AXE company?
O A) $137,500, $3,000,000
O B) $300,000, $3,162,500
C) $137,500; $2,300,000
D) None of the above,
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