Company P purchased a 30% interest in Company S on January 1, 20X1, for $100,000. The price was equal to the book value of the equity acquired. The reported income (loss) and dividends paid by the Company S are as follows: Investment income reported in 20X4 under the sophisticated equity method would be ____.

Question

Company P purchased a 30% interest in Company S on January 1, 20X1, for $100,000. The price was equal to the book value of the equity acquired. The reported income (loss) and dividends paid by the Company S are as follows:  Investment income reported in 20X4 under the sophisticated equity method would be ____.

Quizplus · Accepted Answer

11eb11de_9342_9c75_ad38_73345a70dd72_TB2014_00

Company P Purchased a 30% Interest in Company S on January