On December 31, 2014, Jean World Corporation recorded the following journal entry relating to its investment in 9,000 shares of common stock of Soda Corporation. 12/31/2014:$\quad$ Long-term investment in common stock $\quad 54,000$
$\quad$$\quad$$\quad$$\quad$$\quad$Equity in affiliate earnings$\quad 54,000$ At the end of 2014, Soda Corporation reported net income of $120,000. Earlier in the year, Soda declared and paid dividends of $18,000.
Required:
A. What method is being used to account for this investment?
B. What is the total number of shares outstanding of Soda's common stock?

Question

On December 31, 2014, Jean World Corporation recorded the following journal entry relating to its investment in 9,000 shares of common stock of Soda Corporation. 12/31/2014:$\quad$ Long-term investment in common stock $\quad 54,000$
$\quad$$\quad$$\quad$$\quad$$\quad$Equity in affiliate earnings$\quad 54,000$ At the end of 2014, Soda Corporation reported net income of $120,000. Earlier in the year, Soda declared and paid dividends of $18,000.
Required: 
A. What method is being used to account for this investment?
B. What is the total number of shares outstanding of Soda's common stock?

Quizplus · Accepted Answer

The Answer of On December 31, 2014, Jean World Corporation recorded the following journal entry relating to its investment in 9,000 shares of common stock of Soda Corporation. 12/31/2014:$\quad$ Long-term investment in common stock $\quad 54,000$
$\quad$$\quad$$\quad$$\quad$$\quad$Equity in affiliate earnings$\quad 54,000$ At the end of 2014, Soda Corporation reported net income of $120,000. Earlier in the year, Soda declared and paid dividends of $18,000.
Required: 
A. What method is being used to account for this investment?
B. What is the total number of shares outstanding of Soda's common stock?

On December 31, 2014, Jean World Corporation Recorded the Following \quad

On December 31, 2014, Jean World Corporation Recorded the Following $\quad$