Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $90,300 and declared dividends of $20,600 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? of $
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- Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $90,000 and declared dividends of $17,100 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? would it increase or decreasePepito Company purchased 40% of the outstanding stock of Reyes Company on January 1. Reyes reported net income of $75,000 and declared dividends of $15,000 during the current year. How much would Pepito adjust its investment in Reyes Company under the equity method?Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $91,900 and declared dividends of $19,800 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? of $fill in the blank 2
- Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $95,300 and declared dividends of $21,200 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? of $ Decrease IncreaseAndrew Company purchased 800 ordinary shares of Valley Industries as a trading investment for P148,800. During the year, Valley Industries paid a cash dividend of P32 per share. At year-end, Valley’s shares were selling for P174 per share. In the income statement for the current year-end, what net amount of unrealized gain/loss and dividend revenue should be reported by Andrew Company?On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company for $450,000. For the year ended December 31, Dennehy reported net income of $90,000 and paid cash dividends of $30,000 on its common stock. On December 31, the carrying value of Matthews' investment in Dennehy under the equity method is O $450,000. O $456,000. O $444,000. O $462,000. eTextbook and Media Save for Later Attempts: 0 of 2 used Submit Answer
- Kross Company purchases an equity investment in Penno Company at a purchase price of $2.5 million, representing 40% of the book value of Penno. During the current year, Penno reports net income of $300,000 and pays cash dividends of $100,000. At the end of the year, the fair value of Kross’s invest- ment is $2.65 million. What amount of income does Kross report relating to this investment in Penno for the year? Explain.Willard Co. acquired a 30% interest in Diltronics for $420,000 and appropriately applied the equity method. During the first year, Diltronics reported net income of $250,000 and paid cash dividends totaling $50,000. What amount will Willard report as it relates to the investment at the end of the first year on its income statement? Show the calculation used to get the answer Investment earnings totaling $75,000 Investment earnings totaling $45,000 Net investment earnings totaling $150,000 Receipt of dividends totaling $15,000Scott Co. acquired a 30% interest in Roker, Inc. for $210,000 and appropriately applied the equity method. During the first year, Roker, Inc. reported net income of $125,000 and paid cash dividends totaling $25,000.What amount will Scott report as it relates to the investment at the end of the first year on its income statement? Select one: A. Investment earnings totaling $37,500 B. Investment earnings totaling $22,500 C. Receipt of dividends totaling $7,500 D. Net investment earnings totaling $75,000
- During 2021 Blossom Company purchased 8700 shares of Nash Inc. for $17 per share. During the year Blossom Company sold 1850 shares of Nash, Inc. for $22 per share. At December 31, 2021 the market price of Nash, Inc.’s stock was $15 per share. What is the total amount of gain/(loss) that Blossom Company will report in its income statement for the year ended December 31, 2021 related to its investment in Nash, Inc. stock? $-8150 $-17400 $-4450 $9250Kross company purchases an equity investment in Penno Company at a purchase price of 5,000,000 millions, representing 34% of the outstanding stock and book value of Penno. During the year, Penno reports net income of 600,000 and pays cash dividends of 200,000. At the end of the year, the market value of Kross's investment is 5,300,000. What amount of income does Kross report relating to this investment in Penno for the year?