On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1, Waterfall Inc. acquired an additional 20% Junior's common stock. No goodwill resulted from either purchase. Junio reported net incomes of $650,000 and $520,000 for 2XX0 and 2XX1, respectively. Dividends paid by Junior amounted to $357,500 in 2XX0 and $162,500 in 2020. What amount of Equity Income should be reported by Waterfall Inc. in 2XX1? Select one: O a. $123,500 O b. $107,250 O c. $156,000 O d. $71,500
On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1, Waterfall Inc. acquired an additional 20% Junior's common stock. No goodwill resulted from either purchase. Junio reported net incomes of $650,000 and $520,000 for 2XX0 and 2XX1, respectively. Dividends paid by Junior amounted to $357,500 in 2XX0 and $162,500 in 2020. What amount of Equity Income should be reported by Waterfall Inc. in 2XX1? Select one: O a. $123,500 O b. $107,250 O c. $156,000 O d. $71,500
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 11MCQ
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![On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1, Waterfall Inc. acquired an additional 20% Junior's common stock. No goodwill resulted from either purchase. Junior
reported net incomes of $650,000 and $520,000 for 2XX0 and 2XX1, respectively. Dividends paid by Junior amounted to $357,500 in 2XX0 and $162,500 in 2020.
What amount of Equity Income should be reported by Waterfall Inc. in 2XX1?
Select one:
O
O
O
a. $123,500
b. $107,250
c. $156,000
d. $71,500](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5acbbb8e-f754-4ef6-a9e5-dcc4dcd0edb0%2F185898c2-295b-4eea-a9b1-c3d74774da7b%2Fwuglhe_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, 2XX0, Waterfall Inc. acquired a 10% interest in Junior Corp. On January 1, 2XX1, Waterfall Inc. acquired an additional 20% Junior's common stock. No goodwill resulted from either purchase. Junior
reported net incomes of $650,000 and $520,000 for 2XX0 and 2XX1, respectively. Dividends paid by Junior amounted to $357,500 in 2XX0 and $162,500 in 2020.
What amount of Equity Income should be reported by Waterfall Inc. in 2XX1?
Select one:
O
O
O
a. $123,500
b. $107,250
c. $156,000
d. $71,500
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