Equity Method. The balance sheet of The Bolton Corporation disclosed a long-term investment in the com- mon shares of The Hunt Corporation valued at $356,250 as of December 31, 2019. The investment had been purchased by The Bolton Corporation in January, 2016. Further, the following financial information from The Hunt Corporation is available: Year Net Income (Loss) Dividends Paid 2016 $ (30,000) 2017 120,000 50,000 2018 150,000 60,000 2019 200.000 80.000

Equity Method. The balance sheet of The Bolton Corporation disclosed a long-term investment in the com- mon shares of The Hunt Corporation valued at $356,250 as of December 31, 2019. The investment had been purchased by The Bolton Corporation in January, 2016. Further, the following financial information from The Hunt Corporation is available: Year Net Income (Loss) Dividends Paid 2016 $ (30,000) 2017 120,000 50,000 2018 150,000 60,000 2019 200.000 80.000

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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Concept explainers

Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.

Question

Determine how much The Bolton Corporation paid for its investment in Hunt common shares in January 2016 assuming that the investment represents a 25 percent ownership interest

**Equity Method**
The balance sheet of The Bolton Corporation disclosed a long-term investment in the common shares of The Hunt Corporation valued at $356,250 as of December 31, 2019. The investment had been purchased by The Bolton Corporation in January 2016. Further, the following financial information from The Hunt Corporation is available:

### Financial Information Table:

- **Year 2016:**
- **Net Income (Loss):** $(30,000)
- **Dividends Paid:** $0

- **Year 2017:**
- **Net Income:** $120,000
- **Dividends Paid:** $50,000

- **Year 2018:**
- **Net Income:** $150,000
- **Dividends Paid:** $60,000

- **Year 2019:**
- **Net Income:** $200,000
- **Dividends Paid:** $80,000

This table shows the annual net income or loss and the dividends paid by The Hunt Corporation from 2016 through 2019.

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