On January 1, 2018, Henderson Corp. purchased 10,000 Alpha Inc. shares for $825,000. This investment represents 30% of the total issued common shares of Alpha Inc. During 2018, Alpha paid total dividends of $60,000 and reported net income of $325,000. At December 31, 2018, the fair value of the Alpha Inc. shares was $950,000.Instructions
a. Calculate the revenue that Henderson reports for 2018 related to this investment.
b. Determine the amount to be reported on the statement of financial position under "Investment in Associates" at December 31, 2018.

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The Answer of On January 1, 2018, Henderson Corp. purchased 10,000 Alpha Inc. shares for $825,000. This investment represents 30% of the total issued common shares of Alpha Inc. During 2018, Alpha paid total dividends of $60,000 and reported net income of $325,000. At December 31, 2018, the fair value of the Alpha Inc. shares was $950,000.Instructions
a. Calculate the revenue that Henderson reports for 2018 related to this investment.
b. Determine the amount to be reported on the statement of financial position under "Investment in Associates" at December 31, 2018.