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FinnZ [79.3K]
2 years ago
9

Blossom, Inc. acquired 20% of Nash Corporation's voting stock on January 1, 2021 for $870000. During 2021, Nash earned $361000 a

nd paid dividends of $224000. Blossom's 20% interest in Nash gives Blossom the ability to exercise significant influence over Nash's operating and financial policies. During 2022, Nash earned $461000 and paid cash dividends of $124000 on April 1 and $124000 on October 1. On July 1, 2022, Blossom sold half of its stock in Nash for $621000 cash. Before income taxes, what amount should Blossom include in its 2021 income statement as a result of the investment?
Business
1 answer:
alexira [117]2 years ago
6 0

Answer:

$72,200

Explanation:

For computing the amount included in the income statement as an investment we need to applied the equity method which is shown below:

= Earned amount × given percentage

= $361,000 × 20%

= $72,200

We simply multiply the earned amount by Nash with the acquiring percentage i.e 20% so that the amount could come and the same is to be included in the income statement

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Answer:

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3 years ago
4. The E. Harris Company issued bonds in September of 2003. When issued, the bonds had 20 years to maturity, a coupon rate of 7.
stiv31 [10]

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3 years ago
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Sergeu [11.5K]
<span>hello there your answer would be communism</span>
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Learn more about Core strategy, here

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