Hinson 14-3 Equity Method

Hinson 14-3 Equity Method - Investment in equity securities...

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Intermediate Accounting I Assignment 14-3 Equity Method Jamie Hinson April 7, 2008 Exercise 12-17 Net assets at acquisition: Fair value $224,000,000 Book value $192,000,000 2006 net income $40,000,000 2006 dividends declared and paid $68,000,000 Investment in equity securities $68,000,000 Cash $68,000,000 Record initial cost of shares
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Unformatted text preview: Investment in equity securities $1,000,000 Investment revenue (25% share of $40,000,000) $1,000,000 Record investee net income Cash (25% share of $68,000,000 dividends paid) $1,700,000 Investment in equity securities $1,700,000 Record Dividends...
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