2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for...

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2. On January 2, 2017, Howdy Doody Corporation purchased 12% of Ranger Corporations common stock for $50,000. Rangers net i

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Answer 1

Answer #1

ANSWER IS OPTION B. $7,200

Calculation is done as [12%*$60,000=$7,200 ] . The percentage of stock purchased and the amount of dividend is required to calculate the income to be shown as investment in the income statement in 2018 of Howdy Doody .

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