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Question 12 0 / 3 pts Use the "QUESTION INFORMATION" below to answer the next 2 questions [Questions 12-13]. QUESTION INFORMATION: On January 1, 2023, Longhorn Company purchased an equity investment in Sooner Company for $7,900 in cash. The table below summarizes financial data that Sooner reported for 2023. Year Dividends Net Income Change in Fair Value 2023 $400 $3,200 $1,200 increase QUESTION TO ANSWER: Assume Longhorn's investment in Sooner was for a 15% ownership stake. Accordingly, Longhorn uses the fair value through net income method to account for its NIEI. This NIEI would be reported on Longhorn's December 31, 2023 balance sheet at $ You Answered 8,320 9,100 (with margin: 0)

Question 12 0 / 3 pts Use the "QUESTION INFORMATION" below to answer the next 2 questions [Questions 12-13]. QUESTION INFORMATION: On January 1, 2023, Longhorn Company purchased an equity investment in Sooner Company for $7,900 in cash. The table below summarizes financial data that Sooner reported for 2023. Year Dividends Net Income Change in Fair Value 2023 $400 $3,200 $1,200 increase QUESTION TO ANSWER: Assume Longhorn's investment in Sooner was for a 15% ownership stake. Accordingly, Longhorn uses the fair value through net income method to account for its NIEI. This NIEI would be reported on Longhorn's December 31, 2023 balance sheet at $ You Answered 8,320 9,100 (with margin: 0)

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 33CE
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Question 12 0 / 3 pts Use the "QUESTION INFORMATION" below to answer the next 2 questions [Questions 12-13]. QUESTION INFORMATION: On January 1, 2023, Longhorn Company purchased an equity investment in Sooner Company for $7,900 in cash. The table below summarizes financial data that Sooner reported for 2023. Year Dividends Net Income Change in Fair Value 2023 $400 $3,200 $1,200 increase QUESTION TO ANSWER: Assume Longhorn's investment in Sooner was for a 15% ownership stake. Accordingly, Longhorn uses the fair value through net income method to account for its NIEI. This NIEI would be reported on Longhorn's December 31, 2023 balance sheet at $ You Answered 8,320 9,100 (with margin: 0)
Transcribed Image Text:Question 12 0 / 3 pts Use the "QUESTION INFORMATION" below to answer the next 2 questions [Questions 12-13]. QUESTION INFORMATION: On January 1, 2023, Longhorn Company purchased an equity investment in Sooner Company for $7,900 in cash. The table below summarizes financial data that Sooner reported for 2023. Year Dividends Net Income Change in Fair Value 2023 $400 $3,200 $1,200 increase QUESTION TO ANSWER: Assume Longhorn's investment in Sooner was for a 15% ownership stake. Accordingly, Longhorn uses the fair value through net income method to account for its NIEI. This NIEI would be reported on Longhorn's December 31, 2023 balance sheet at $ You Answered 8,320 9,100 (with margin: 0)
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