Company A buys $800,000 worth (40%) of the voting stock of Company B in 2019. Company B reports an annual loss of $475,000 in 2019 and did not pay dividends to A. in 2020, Company B reports net income of $500,000 and dividends of $100,000. How does Company A record the investment in Company B and just it on balance sheet? What does Company A report on the balance sheet for its investment in B at the end of 2020?
Company A buys $800,000 worth (40%) of the voting stock of Company B in 2019. Company B reports an annual loss of $475,000 in 2019 and did not pay dividends to A. in 2020, Company B reports net income of $500,000 and dividends of $100,000. How does Company A record the investment in Company B and just it on balance sheet? What does Company A report on the balance sheet for its investment in B at the end of 2020?
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Transcribed Image Text:Company A buys $800,000 worth (40%) of the voting stock of Company B in 2019.
Company B reports an annual loss of $475,000 in 2019 and did not pay dividends to A.
in 2020, Company B reports net income of $500,000 and dividends of $100,000.
How does Company A record the investment in Company B and just it on balance sheet?
What does Company A report on the balance sheet for its investment in B at the end of 2020?
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