Madigan acquired 100% of Rauner on January 1, 2016 for $1,214,161. During 2016, Madigan reported $270,748...
Madigan acquired 100% of Rauner on January 1, 2016 for $1,214,161. During 2016, Madigan reported $270,748 of net income and declared and paid $24,907 in dividends. There was no AAP involved in the transaction.
Madigan uses the equity method of accounting to report its Investment in Rauner on its standalone financial statements. What amount should Madigan report for its Investment in Rauner on its consolidated balance sheet as of 12/31/2016?
Homework Answers
| Value of investment as on | 01-Jan-16 | $1,214,161 |
| Add: Net income | $270,748 | |
| Less: Dividends | $24,907 | |
| Value of investment as on | 31-Dec-16 | $1,460,002 |
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