On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company for $450,000. For theyear ended December 31, Dennehy reported net income of $90,000 and paid cash dividends of $30,000 on its common stock. OnDecember 31, the carrying value of Matthews' investment in Dennehy under the equity method isO $450,000.O $456,000.O $444,000.O $462,000.eTextbook and MediaSave for LaterAttempts: 0 of 2 usedSubmit Answer

Solution : Cost of investment = $450,000 Net income of Dennehy = $90,000 Cash dividend paid by…

Answered: On January 2, Matthews Corporation…

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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