Accounting question On January 1, 2013, Anderson Company purchased 40% of thevoting common stock of Barney Company for $2,000,000, whichapproximated book value. During 2013, Barney paid dividends of$30,000 and reported a net loss of $70,000.What amount of equity income would Anderson recognize in2013 from its ownership interest in Barney?a. $12,000 loss.b. $28,000 income.c. $12,000 income.d. $16,000 loss.e. $28,000 loss.

Step 1: Define Net LossA negative figure for revenue is a net loss in accountancy. In other words, a…

Answered: On January 1, 2013, Anderson Company…

Cornerstones of Financial Accounting

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Question: On January 1, 2011, Anderson Company purchased 40% of the voting common stock of Barney Company for $2,000,000, which approximated book value. During 2011, Barney paid dividends of $30,000 and reported a net loss of $70,000. What amount of equity income would Anderson recognize in 2011 from its ownership interest in Barney?
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