BE 12-10 Equity securitiesLO12-5Adams Industries holds 40,000 shares of FedEx common stock, which is not a large enoughownership interest to allow Adams to exercise significant influence over FedEx. On December 31,|2021, and December 31, 2022, the market value of the stock is $95 and $100 per share,respectively. What is the appropriate reporting category for this investment and at what amountwill it be reported in the 2022 balance sheet?BE 12-11 Equity investments and dividendsLO12-5Turner Company owns 10% of the outstanding stock of ICA Company. During the current year,ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have onTurner's 2021 financial statements? Explain the reasoning for this effect.BE 12-12 Equity method and dividendsLO12-6Turner Company owns 40% of the outstanding stock of ICA Company. During the current year,ICA paid a $5 million cash dividend on its common shares. What effect did this dividend have onTurner's 2021 financial statements? Explain the reasoning for this effect.

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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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