Investment income and balance sheet investment account


Alpha company purchased 30% of the voting common stock of beta company on January 1 and paid $500,000 for the investment. Beta Company reported $100,000 of earnings for the year and paid $40,000 in cash dividends. Calculate investment income and the balance sheet investment account for Alpha Company under the cost method and under the equity method.

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Finance Basics: Investment income and balance sheet investment account
Reference No:- TGS052144

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