Ramiro Company purchased 40% of the outstanding stock of Marco Company on January 1. Marco reported net income of $95,000 and declared dividends of $35,000 during the year. How much would Ramiro adjust its investment in Marco Company under the equity method? would it increase or decrease

On January 1, Sohar Corporation purchased a 25% equity in Salalah Corporation for $120,000. At December 31, Salalah declared and paid a $50,000 cash dividend and reported net income of $250,000. Instructions (a) Journalize the transactions. (b) Determine the amount to be reported as an investment in Salalah stock at December 31.

Jackson Company engaged in the following investment transactions during the current year. February 17    Purchased 430 shares of Medical Company common stock for $15 per share plus a brokerage commission of $150. Jackson does not have significant influence over Medical.April 1    Bought 23,000 of the 100,000 outstanding shares of Olde Company for $230,000. Goodwill of $73,000 was included in the price.June 25    Received a $1.30 per share dividend on Medical Company stock.June 30    Olde Company reported second-quarter profits of $13,000.October 1    Purchased 1,300 bonds of Alpha Company for $14 per bond plus a brokerage fee of $330. These bonds are classified as securities available-for-sale.December 31    Medical Company shares are selling for $20 and Alpha bonds are selling for $11.Prepare the appropriate journal entries to record the transactions for the year, including year-end adjustments. Note: If no entry is required for a transaction/event, write "No journal entry required"

Fairbanks Corporation purchased 400 ordinary shares of Sherman Inc. as a trading investment for E13,200. During the year, Sherman paid a cash dividend of £3.25 per share. At year-end, Sherman shares were selling for £34.50 per share. How much total revenues (all revenues) should be recognized from this investment during the year? Select one: Oa. $1900 Ob. $700 OC $1300 Od. $600