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Unformatted text preview: and had net income of $150,000. Under the equity method, the $9,000 in dividends ($30,000 30%) received by The Sisters, Inc. would decrease the Investment in 2005 GROUP account rather than be reported as dividend revenue. The same account would increase $45,000 for The Sisters, Inc. 30% share of net income ($150,000 30%) as they treat their share of net income as revenue. At the end of the year, the balance in the Investment in 2005 GROUP account would be $108,000. Investment in 2005 Group Investment 72,000 9,000 Dividends Received Share of net income 45,000 108,000...
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.
- Spring '09