has 15% ownership of a and adopts the fair value method in it's recognition for this investment. the investee reported net income of $110,000 for 2021 and paid dividends of $60,000 on November 1, 2021 how much equity income should the company recognized in the investment in 2021 a. 16,500 b. 9,000 c. 25,500 d. 7,500 A company corporation
has 15% ownership of a and adopts the fair value method in it's recognition for this investment. the investee reported net income of $110,000 for 2021 and paid dividends of $60,000 on November 1, 2021 how much equity income should the company recognized in the investment in 2021 a. 16,500 b. 9,000 c. 25,500 d. 7,500 A company corporation
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 23E
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Question
![A company has 15% ownership of a
corporation and adopts the fair value
method in it's recognition for this
investment. the investee reported net
income of $110,000 for 2021 and paid
dividends of $60,000 on November 1,
2021 how much equity income should
the company recognized in the
investment in 2021
a. 16,500
b. 9,000
c. 25,500
d. 7,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7d1b6bc7-22be-4d7a-9314-f8909e710633%2F97e11903-0a95-4097-a6e6-7b1270584be6%2F0z6hvnp_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A company has 15% ownership of a
corporation and adopts the fair value
method in it's recognition for this
investment. the investee reported net
income of $110,000 for 2021 and paid
dividends of $60,000 on November 1,
2021 how much equity income should
the company recognized in the
investment in 2021
a. 16,500
b. 9,000
c. 25,500
d. 7,500
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