Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

تمرين 6

Company R purchases a 25% interest in Company E on January 1, 2010, at its book value of $20,000. From 2010 through 2014, Company E earns a total of $200,000. From 2015 through 2019, it loses $300,000. In 2020, Company E reports net income of $30,000. What is Company R's investment income for 2020, and what is its balance in the investment in Company E account on December 31, 2020?