48. on January 1, 20X4, Griffin, Inc. purchased 12% of Water Co.'s common stock. On September 1, 20x4, Griffin purchased addition Pater shares, bringing its ownership up to 35% of Water'scommon stock outstanding. During December 20X4, Water declared and paid a cash dividend on aẞ of its outstanding common stock, Griffin uses the equity method to account for its investment in Water. How much income from the Water investment should Griffin's 20X4 income statement report? A. 12% of Water's income for January 1 to August 31, 20X4, plus 35% of Water's income for September 1 to December 31, 20X4. 8. 35% of Water's income for September 1 to December 31, 20x4 only. © C. 35% of Water's 20X4 income. D. Amount equal to dividends received from Water.
48. on January 1, 20X4, Griffin, Inc. purchased 12% of Water Co.'s common stock. On September 1, 20x4, Griffin purchased addition Pater shares, bringing its ownership up to 35% of Water'scommon stock outstanding. During December 20X4, Water declared and paid a cash dividend on aẞ of its outstanding common stock, Griffin uses the equity method to account for its investment in Water. How much income from the Water investment should Griffin's 20X4 income statement report? A. 12% of Water's income for January 1 to August 31, 20X4, plus 35% of Water's income for September 1 to December 31, 20X4. 8. 35% of Water's income for September 1 to December 31, 20x4 only. © C. 35% of Water's 20X4 income. D. Amount equal to dividends received from Water.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:48. on January 1, 20X4, Griffin, Inc. purchased 12% of Water Co.'s common stock. On September 1, 20x4, Griffin
purchased addition Pater shares, bringing its ownership up to 35% of Water'scommon stock outstanding. During
December 20X4, Water declared and paid a cash dividend on aẞ of its outstanding common stock, Griffin uses the
equity method to account for its investment in Water. How much income from the Water investment should Griffin's
20X4 income statement report? A. 12% of Water's income for January 1 to August 31, 20X4, plus 35% of Water's
income for September 1 to December 31, 20X4. 8. 35% of Water's income for September 1 to December 31, 20x4
only. © C. 35% of Water's 20X4 income. D. Amount equal to dividends received from Water.
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