FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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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 $15,000
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