On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for $100,000. The investment is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows: What would be the carrying value of X's Investment in Y at the end of 2012?

Question

On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for $100,000. The investment is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows:  What would be the carrying value of X's Investment in Y at the end of 2012?

Quizplus · Accepted Answer

The Answer of On January 1, 2010, X Inc. purchased 25% of the voting shares of Y Inc. for $100,000. The investment is reported using the equity method, as X has significant influence over Y. Y's net income and declared dividends for the following three years are as follows:  What would be the carrying value of X's Investment in Y at the end of 2012?