RBO Company purchased 25% of the voting common stock of YJD Company on January 1 and paid $800,000 for the investment.YJD Company reported $50,000 of earnings for the year and paid $10,000 in cash dividends.Calculate investment income and the balance sheet investment account balance for RBO Company using the following methods:
a.Cost method.
b.Equity method.

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The Answer of RBO Company purchased 25% of the voting common stock of YJD Company on January 1 and paid $800,000 for the investment.YJD Company reported $50,000 of earnings for the year and paid $10,000 in cash dividends.Calculate investment income and the balance sheet investment account balance for RBO Company using the following methods:
a.Cost method.
b.Equity method.

RBO Company Purchased 25% of the Voting Common Stock of YJD