On January 1, 2017, Iris, Inc. purchased 35% of Crayola Co.’s outstanding voting stock for $70,000. During 2017, Crayola

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

On January 1, 2017, Iris, Inc. purchased 35% of Crayola Co.’s outstanding voting stock for $70,000. During 2017, Crayola

Post by answerhappygod »

On January 1, 2017, Iris, Inc. purchased 35% of Crayola Co.’s
outstanding voting stock for $70,000. During 2017, Crayola earned
net income of $40,000, and paid Iris a cash dividend of $2,500. On
December 31, 2017, Iris’ investment in Crayola had a fair market
value of $65,000. If Iris accounts for this investment using the
equity method, what will the balance in its Investment in Crayola
account be?
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”