Munson and Sons (MS) owns 32% of Harrington Corp. During 2022, Harrington reported a net income of $395,000 and did not declare any dividends. Additionally, Harrington sold a piece of land, with a carrying value of $100,000 to MS for $400,000. MS still holds the land. MS accounts for its investment in Harrington Corp using the equity method. Required: On December 31, 2022, a journal entry is required to record the impact of the above transactions. What is the net debit to the Investment in Harrington Corp account/ the net credit to the to Equity Income (these would be th same). Your Answer:

Munson and Sons (MS) owns 32% of Harrington Corp. During 2022, Harrington reported a net income of $395,000 and did not declare any dividends. Additionally, Harrington sold a piece of land, with a carrying value of $100,000 to MS for $400,000. MS still holds the land. MS accounts for its investment in Harrington Corp using the equity method. Required: On December 31, 2022, a journal entry is required to record the impact of the above transactions. What is the net debit to the Investment in Harrington Corp account/ the net credit to the to Equity Income (these would be th same). Your Answer:

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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