Question #6200179

Accounting question! (investing and reporting)?

On January 1, 20A, Will, Inc., bought 40% of the outstanding shares of Abe Corporation at a cost of $137,000. The equity method of accounting for this investment is used. At the end of 20A, Abe Corporation reported $30,000 net income and paid $10,000 cash dividends. At the end of 20A, the shares had a market value of $150,000. This investment should be reported on the balance sheet of Will, Inc., on December 31, 20A, at I know the answer is 145,000 but I can't figure out how to get to it. Anyone feel like helping?

2013-05-10 21:38:58

TELL US , if you have any answer

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