On January 1, 2010, Harris pays $300,000 for 6,000 shares of Horton, representing a 25% ownership. Harris has a 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. 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 a 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. 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?

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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