Please give me true answer this financial accounting question On January 1, 2023, Blue Ridge Corporation paid $1,500,000 for 40,000 shares ofSkyline Industries' voting common stock, which represents a 25% investment. Noallocation to goodwill or any other specific account was made. Blue Ridge acquiredsignificant influence over Skyline with this investment. Skyline paid a dividend of$2.50 per share during 2023 and reported a net income of $600,000.What was the balance in the Investment in Skyline Industries account in the financialrecords of Blue Ridge as of December 31, 2023?a) $1,825,000b) $1,550,000c) $1,925,000d) $1,740,000

Step 1: Define Equity MethodThe equity method is used to account for investments where the investor…

Answered: On January 1, 2023, Blue Ridge…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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Handley Ltd. acquired 42% of the common shares of Lecce Ltd. on January 1, 2024, by paying $5.68 million for 142,000 shares. Lecce declared a cash dividend of $0.60 per share in each quarter that Handley received on March 20, June 20, September 20, and December 20. Lecce reported net income of $1.42 million for the year. At December 31, the market price of the Lecce shares was $44 per share.
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