Show Attempt HistoryCurrent Attempt in ProgressSandhu Travel Agency Ltd. has 360,000 common shares authorized and 126,000 shares issued on December 31, 2020. On January 2,2021, Kennel Inc. purchased shares of Sandhu Travel Agency for $41 per share. Kennel intends to hold these shares as a long-terminvestment.Kennel's accountant prepared a trial balancg at December 31, 2021, under the assumption that Kennel could not exercise significantinfluence over Sandhu Travel Agency. Under this assumption, the trial balance included the following accounts and amounts related tothe Sandhu investment:Long-term investments$1.354,500Dividend income126,000Unrealized gain on long-term investments63,000(a)SINAY14 Your answer is partially correct.Assuming that Kennel does use the equity method, what amount will it report on its statement of income for 2021 regarding thisinvestment?KËNNEL INC.Statement of Income (Partial)For the Year Ended December 31, 2021Gross ProfitLong-Term Investments1018000eTextbook and MediaList of AccountsAssistance Used14

Introduction: One of 3 financial Statements is that the financial statement. The financial…

Answered: Assuming that Kennel does use the…

Assuming that Kennel does use the equity method, what amount will it report on its statement of income for 2021 regarding this investment?

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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