Marin Inc., a public company, owns 20% of Dong Ltd's common shares for strategic purposes. The investment's carrying amount at January 1, 2024, is $299,200. During the year, Dong reported profit of $244,800 and paid a dividend of $16,200. The investment's fair value on December 31, 2024, Marin's year end, is $314,600. (a) Assuming Marin has significant influence over Dong, indicate the amount reported on the balance sheet for the investment at December 31 and the amount of income from this investment reported in the income statement. Equity Method Balance Sheet: Income Statement:
Marin Inc., a public company, owns 20% of Dong Ltd's common shares for strategic purposes. The investment's carrying amount at January 1, 2024, is $299,200. During the year, Dong reported profit of $244,800 and paid a dividend of $16,200. The investment's fair value on December 31, 2024, Marin's year end, is $314,600. (a) Assuming Marin has significant influence over Dong, indicate the amount reported on the balance sheet for the investment at December 31 and the amount of income from this investment reported in the income statement. Equity Method Balance Sheet: Income Statement:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Marin Inc., a public company, owns 20% of Dong Ltd's common shares for strategic purposes. The investment's carrying amount at
January 1, 2024, is $299,200. During the year, Dong reported profit of $244,800 and paid a dividend of $16,200. The investment's fair
value on December 31, 2024, Marin's year end, is $314,600.
(a)
Assuming Marin has significant influence over Dong, indicate the amount reported on the balance sheet for the investment at
December 31 and the amount of income from this investment reported in the income statement.
Balance Sheet:
Income Statement:
Equity Method
0.1
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