Financial accounting Major bought 100% of Medium. On January 1, Year 1, for$8,000,000. Annual amortization of $40,000 resulted from thisacquisition. Medium reported a net income of $500,000 in Year1 and paid $100,000 in dividends. What is the Investment inMedium Co. balance on Major's books as of December 31, Year1, if the equity method has been applied?a. $8,000,000b. $8,460,000c. $8,400,000d. $8,360,000

Step 1:The company implied the equity method. As per the equity method, the original investment is…

Answered: Major bought 100% of Medium. On January…

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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