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840,000 Common stock and APIC, 12/31/20 (*The term "Net income" means Pelican's investment income has been included.) uired: Provide the following figures: onsolidated net income of Pelican and Sun, 2020: 568,000 elican's "Investment in Sun" at 12/31/20 (in Pelican's balance sheet):

840,000 Common stock and APIC, 12/31/20 (*The term "Net income" means Pelican's investment income has been included.) uired: Provide the following figures: onsolidated net income of Pelican and Sun, 2020: 568,000 elican's "Investment in Sun" at 12/31/20 (in Pelican's balance sheet):

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Problem 3 Pelican Company created Sun, Inc. three years ago and has been using the equity method to account for this investment. The following account balances are found in each firm's financial statements of the current year, 2020: Accounts Retained earnings, 1/1/20 Net income, 2020 Dividends declared, 2020 Retained earnings, 12/31/20 Common stock and APIC, 12/31/20 Pelican $650,000 290,000* 160,000 780,000 840,000 Sun $275,000 165,000 90,000 350,000 568,000 (*The term "Net income" means Pelican's investment income has been included.) Required: Provide the following figures: 1. Consolidated net income of Pelican and Sun, 2020: 2. Pelican's "Investment in Sun" at 12/31/20 (in Pelican's balance sheet):
Transcribed Image Text:Problem 3 Pelican Company created Sun, Inc. three years ago and has been using the equity method to account for this investment. The following account balances are found in each firm's financial statements of the current year, 2020: Accounts Retained earnings, 1/1/20 Net income, 2020 Dividends declared, 2020 Retained earnings, 12/31/20 Common stock and APIC, 12/31/20 Pelican $650,000 290,000* 160,000 780,000 840,000 Sun $275,000 165,000 90,000 350,000 568,000 (*The term "Net income" means Pelican's investment income has been included.) Required: Provide the following figures: 1. Consolidated net income of Pelican and Sun, 2020: 2. Pelican's "Investment in Sun" at 12/31/20 (in Pelican's balance sheet):
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