Refer to the information from Question 47. Now assume the following year Halliday unexpectedly reports net income of $1,500,000. What amount should Grant report as equity in the net income of Halliday for the current year?

Question

Quizplus · Accepted Answer

Grant's share of Halliday's net income is $600,000 (= $1,500,000 x 40%). However, it did not report $400,000 of its share of Halliday's loss last year. $600,000 - $400,000 = $200,000.

Refer to the Information from Question 47