On January 1, 2022, Orleans industries acquired a 15% interest in Florida Corporation through the purchase of 12,000 shares of Florida Corporation common stock for $640,000.During 2022, Florida Corp.paid $160,000 in dividends and reported a net loss of $200,000.Orleans is able to exert significant influence on Florida.However, Orleans mistakenly records these transactions using the cost method rather than the equity method of accounting.Which of the following would show the correct presentation for Orlean's investment using the equity method?

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2022, Orleans industries acquired a 15% interest in Florida Corporation through the purchase of 12,000 shares of Florida Corporation common stock for $640,000.During 2022, Florida Corp.paid $160,000 in dividends and reported a net loss of $200,000.Orleans is able to exert significant influence on Florida.However, Orleans mistakenly records these transactions using the cost method rather than the equity method of accounting.Which of the following would show the correct presentation for Orlean's investment using the equity method?

On January 1, 2022, Orleans Industries Acquired a 15% Interest