Business
Business, 20.07.2020 01:01, janyiareese12

Small Company reported 20X7 net income of $49,000 and paid dividends of $17,000 during the year. Mock Corporation acquired 40 percent of Small’s shares on January 1, 20X7, for $95,000. At December 31, 20X7, Mock determined the fair value of the shares of Small to be $131,000. Mock reported operating income of $88,000 for 20X7. RequiredCompute Mock's net income for 20X7 assuming it usesa. the cost method in accounting for its investment in Smallb. the equity method in accounting for its investment in Smallc. the fair value method in accounting for its investment in Samll

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Small Company reported 20X7 net income of $49,000 and paid dividends of $17,000 during the year. Moc...

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