ABC owns a 35 percent interest in the voting common of XYZ and uses the equity method.For 2013,XYZ reported income of $120,000 and declared cash dividends of $40,000.If the carrying value of XYZ investment was $290,000 on January 1,2013,ABC should (a) recognize investment revenue for 2013,and (b) report the carrying value of the investment,as follows:

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The Answer of ABC owns a 35 percent interest in the voting common of XYZ and uses the equity method.For 2013,XYZ reported income of $120,000 and declared cash dividends of $40,000.If the carrying value of XYZ investment was $290,000 on January 1,2013,ABC should (a) recognize investment revenue for 2013,and (b) report the carrying value of the investment,as follows:

ABC Owns a 35 Percent Interest in the Voting Common