DeMilo, Incorporated, owns 100 percent of the 44,000 outstanding shares of Ricardo, Incorporated. DeMilo currently carries the Investment in Ricardo account at $505,600 using the equity method. Ricardo issues 6,000 new shares to the public for $15.25 per share. Required: How does this transaction affect the Investment in Ricardo account that appears on DeMilo's financial records? Investment in Ricardo should be increased by I
DeMilo, Incorporated, owns 100 percent of the 44,000 outstanding shares of Ricardo, Incorporated. DeMilo currently carries the Investment in Ricardo account at $505,600 using the equity method. Ricardo issues 6,000 new shares to the public for $15.25 per share. Required: How does this transaction affect the Investment in Ricardo account that appears on DeMilo's financial records? Investment in Ricardo should be increased by I
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:DeMilo, Incorporated, owns 100 percent of the 44,000 outstanding shares of Ricardo, Incorporated. DeMilo currently carries
the Investment in Ricardo account at $505,600 using the equity method.
Ricardo issues 6,000 new shares to the public for $15.25 per share.
Required:
How does this transaction affect the Investment in Ricardo account that appears on DeMilo's financial records?
Investment in Ricardo should be increased
by
I
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