Brown Crop purchased a 25% interest in Hack Corp for 2 million on Jan 1, 2018. On Nov. 1, 2018, Hack declared and paid 1...
Brown Crop purchased a 25% interest in Hack Corp for 2 million on Jan 1, 2018. On Nov. 1, 2018, Hack declared and paid 1 million in dividend. On Dec. 31,
Hack reported a net income of 1 million for the year. What amount would Brown report in the balance sheet of year end Dec. 31, 2018 for its investment in Hack?
Homework Answers
calculate ending balance of investment
| Beginning balance | 2000000 |
| Add: Net income (1000000*25%) | 250000 |
| Less: Dividend (1000000*25%) | -250000 |
| Ending balance | 2000000 |
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Brown Crop purchased a 25% interest in Hack Corp for 2 million on Jan 1, 2018. On Nov. 1, 2018, Hack declared and paid 1...
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