Asked by Nelli Vartanian on Jul 08, 2024
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At the end of 2019,the shares had a fair value of $150,000.What is the amount of Equity in investee earnings for 2019?
A) $4,000.
B) $12,000.
C) $13,000.
D) $21,000.
Equity Method
An accounting technique used to record investments in other companies, where the investment is initially recorded at cost and adjusted thereafter for the investor's share of the investee's net income or loss.
Investee Earnings
The portion of income attributable to an investor from its investment in an associated company.
Cash Dividends
Payments made by a corporation to its shareholders from the company's profits.
- Assess the acquisition-related goodwill and the financial returns from equity method investee companies.
Verified Answer
Learning Objectives
- Assess the acquisition-related goodwill and the financial returns from equity method investee companies.
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