In 2013, West Yellow Corporation made a $1.44 million investment in Ennis, Inc. and assumed a 42% ownership of Ennis. The investment in Ennis is accounted for under the equity method. Ennis reported the following financial information for the year ended December 31, 2017 (in thousands):

a. Calculate the equity earnings that West Yellow reported on its 2017 income statement.
b. Determine the investment balance for Ennis on West Yellow's balance sheet at December 31, 2017.

Question

In 2013, West Yellow Corporation made a $1.44 million investment in Ennis, Inc. and assumed a 42% ownership of Ennis. The investment in Ennis is accounted for under the equity method. Ennis reported the following financial information for the year ended December 31, 2017 (in thousands):
  
a. Calculate the equity earnings that West Yellow reported on its 2017 income statement.
b. Determine the investment balance for Ennis on West Yellow's balance sheet at December 31, 2017.

Quizplus · Accepted Answer

The Answer of In 2013, West Yellow Corporation made a $1.44 million investment in Ennis, Inc. and assumed a 42% ownership of Ennis. The investment in Ennis is accounted for under the equity method. Ennis reported the following financial information for the year ended December 31, 2017 (in thousands):
  
a. Calculate the equity earnings that West Yellow reported on its 2017 income statement.
b. Determine the investment balance for Ennis on West Yellow's balance sheet at December 31, 2017.

In 2013, West Yellow Corporation Made a $1