Interest in the common stock of investee


Investor has a 40% ownership interest in the common stock of Investee. Investor paid $10,000 more than

book value for its 40% interest and regards the excess as attributable to goodwill. If Investee reports income of $200,000 and pays dividends of $50,000, the operating activities of the consolidated statement of cash flows) will reflect an adjustment of The answer is $60,000. Can you show me how this answer is calculated?

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Accounting Basics: Interest in the common stock of investee
Reference No:- TGS0675509

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