On January 1, 2020, Crane Industries acquired a 15% interest in Blossom Corporation through the...
60.1K
Verified Solution
Link Copied!
Question
Accounting
On January 1, 2020, Crane Industries acquired a 15% interest in Blossom Corporation through the purchase of 8000 shares of Blossom Corporation common stock for $200000. During 2020, Blossom Corp. paid $55000 in dividends and reported a net loss of $85000. Crane is able to exert significant influence on Blossom. However, Crane mistakenly records these transactions using the cost method rather than the equity method of accounting. Which of the following would show the correct presentation for Crane's investment using the equity method? Investment Account Net Earnings (loss) o $85000 ($30000) O $179000 ($12750) O $187250 ($12750) O $179000 ($4500)
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.