Solved: Pronghorn co invested 940000 in stellar co for 25 of its, Accounting Basics

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Pronghorn co invested 940000 in stellar co for 25 of its

Question - Pronghorn Co. invested $940,000 in Stellar Co. for 25% of its outstanding stock. Stellar Co. pays out 30% of net income in dividends each year.

Use the information in the following T-account for the investment in Stellar to answer the following questions.

Investment in Stellar Co.

940,000

112,000

33,600

(a) How much was Pronghorn Co.'s share of Stellar Co.'s net income for the year?

(b) What was Stellar Co.'s total net income for the year?

(d) How much was Pronghorn Co.'s share of Stellar Co.'s dividends for the year?

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Accounting Basics: Pronghorn co invested 940000 in stellar co for 25 of its

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Accounting Basics: Pronghorn co invested 940000 in stellar co for 25 of its

Reference No:- TGS02493025

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