o Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $91,900 and
Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $91,900 and declared dividends of $19,800 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method?
of $fill in the blank 2
This strategy is only employed when the investor has sufficient control over the investee. The investor recognizes its share of the investee's earnings and losses during the periods in which these gains and losses are also shown in the investee's accounts. The income statement details the investing firm's profit or loss. Furthermore, every recognized profit raises the investing entity's investment, whilst any recognized loss lowers it.
Step by step
Solved in 3 steps
