Business, 07.04.2020 18:28 lanashanabJHsbd1099

An investor company owns 40% of the outstanding common stock of an investee company, which allows the investor to exercise significant influence over the investee. The Equity Investment was reported at $750,000 as of the end of the previous year. During the year, the investor received dividends of $80,000 from the investee. The investee reports the following income statement for the year:Revenues - $2,400,000 Expenses - 1,800,000 Net income - 600,000 Other comprehensive income - 100,000 Comprehensive income - $700,000 a. How much equity income should the investor report in its net income (i. e., as part of the current year income statement)? $ 0 b. What amount should the investor report for the Equity Investment in its balance sheet at the end of the year? $ 0

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