Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000...
Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2013. During 2013, Darby Company declared dividends of $100,000 and reported earnings for the year of $400,000.
If Blanco Company uses the equity method of accounting for its investment in Darby Company, its Equity Investment (Darby) account at December 31, 2013 should be Question 30
options: $580,000. $600,000. $660,000. $680,000.
Homework Answers
Equity investment
| Investment | 600000 |
| Add: Net income (400000*20%) | 80000 |
| Less: Dividend (100000*20%) | -20000 |
| Ending value of investment | 660000 |
So answer is c) $660000
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Blanco Company purchased 200 of the 1,000 outstanding shares of
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