RBO Company purchased 30% of the voting common stock of YJD Company on January 1 and paid $500,000 for the investment. Y

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answerhappygod
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RBO Company purchased 30% of the voting common stock of YJD Company on January 1 and paid $500,000 for the investment. Y

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RBO Company purchased 30% of the voting common stock of YJD
Company on January 1 and paid $500,000 for the investment. YJD
Company reported $100,000 of earnings for the year and paid $40,000
in cash dividends. Calculate investment income and the balance
sheet investment account balance for RBO Company using the
following methods: (Mark 4) CLO6
a. Cost method.
b. Equity method.
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