Unformatted text preview: During 20X4, Delta earned $13,000,000 and paid $3,000,000 in dividends. Both companies have December 31 year ends. (a) Prepare Coastal's entries to account for the activity pertaining to the investment in Delta Shipping. (b) Calculate the change in Delta's total equity during the year, and compare this to the change in Coastal's Investment in Delta account. Are they correlated, and does this help explain the term "equity" method of accounting....
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- Spring '11
- Accounting, Coastal Pine, Delta Shipping