Vicker Study guides, Class notes & Summaries
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it does not have the ability to exercise significant influence over the operating policies of the investee.
- Answers • 19 pages • 2019
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1. Gaw Company owns 15% of the common stock of Teal Corporation and used the fair-value method to account for this investment. Teal reported net income of $110,000 for 2002 and paid dividends of $60,000 on October 1, 2002. How much income should Gaw recognize on this investment in 2002? A) $16,500 B) $ 9,000 C) $25,500 D) $ 7,500 E) $50,000 2. Yult Company owns 25% of the common stock of Dent Co....
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