(Solved by Expert Tutors) Assume that an investor owns 30% of an investee, and accounts for its in

beginning of the year, the Equity Investment was reported on the investor's balance sheet at $300,000. During the year, the investee reported net income of $100,000 and paid dividends of $20,000 to the investor. In addition, the investor sold inventory to the investee, realizing a gross profit of $40,000 on the sale. At the end of the year, 20% of the inventory remained unsold by the investee.?

A. How much equity income should the investor report for the year?

B. What is the balance of the Equity Investment at the end of the year?

C. Assume that the remains inventory is sold in the following year and that the investee reports $150,000 of net income. How much equity income will the investor report for the following year??

 

---

Solution details:

STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Apr 19, 2020

PRICE: $15

Solution~000.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked Download

×

Please Enter The Email Where You Want To Receive Solution.

Get this solution for only: $

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Apr 19, 2020

EXPERT

Tutor

ANSWER RATING

YES, THIS IS LEGAL

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

• As a reference for in-depth understanding of the subject.
• As a source of ideas / reasoning for your own research (if properly referenced)
• For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).

This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.