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Jack Corporation Purchased a 20% Interest in Jill Corporation for $1,500,000

Question 81

Multiple Choice

Jack Corporation purchased a 20% interest in Jill Corporation for $1,500,000 on January 1, 2013. Jack can significantly influence Jill. On December 10, 2013, Jill declared and paid $1 million in dividends. Jill reported a net loss of $6 million for the year. What amount of loss should Jack report in its income statement for 2013 relative to its investment in Jill?


A) $1,000,000.
B) $1,200,000.
C) $1,400,000.
D) $1,500,000.

Correct Answer:

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