On January 1, 2010 Harris pays $300,000 for 6,000 shares of Horton, representing a 25% ownership. Harris has significant influence. During 2010, Horton earns $200,000 and pays dividends of $2 per share. Harris has net income of $500,000 and pays dividends of $300,000 in 2010. Answer the following: a. How much equity income is recorded by Harris in 2010. b. What is the balance in the Investment in Horton found on Harris books at December 31, 2010.
On January 1, 2010 Harris pays $300,000 for 6,000 shares of Horton, representing a 25% ownership. Harris has significant influence. During 2010, Horton earns $200,000 and pays dividends of $2 per share. Harris has net income of $500,000 and pays dividends of $300,000 in 2010. Answer the following: a. How much equity income is recorded by Harris in 2010. b. What is the balance in the Investment in Horton found on Harris books at December 31, 2010.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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want A and b answer please
Transcribed Image Text:On January 1, 2010 Harris pays $300,000 for 6,000 shares of Horton, representing a 25%
ownership. Harris has significant influence. During 2010, Horton earns $200,000 and pays
dividends of $2 per share. Harris has net income of $500,000 and pays dividends of $300,000 in
2010. Answer the following:
a. How much equity income is recorded by Harris in 2010.
b. What is the balance in the Investment in Horton found on Harris books at December 31,
2010.
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