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  3. abc owns 30 shares of xyz. xyzs total shares outst

ABC owns 30 shares of XYZ. XYZs total shares outstanding is 100. Thus, ABC owns...

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Accounting

ABC owns 30 shares of XYZ. XYZs total shares outstanding is 100. Thus, ABC owns 30 percent of XYZs equity and it has significant influence over XYZ. At the beginning of 20X0, the carrying value of ABCs investment in XYZ was 100. During 20X0, XYZ generated net income of 60 and paid a dividend of 10. In addition, during 20X0, XYZs share price increased by three. Which of the following is correct?
Group of answer choices
With respect to its investment in XYZ, ABC recognizes equity method income of 15 for 20X0.
With respect to its investment in XYZ, ABC recognizes equity method income of 18 for 20X0.
With respect to its investment in XYZ, ABC recognizes equity method income of 90 for 20X0.
With respect to its investment in XYZ, ABC recognizes equity method income of 93 for 20X0.

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