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  3. on january 3, 2020, baxter, inc. acquired 40% of t

On January 3, 2020, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor...

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Accounting

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On January 3, 2020, Baxter, Inc. acquired 40% of the outstanding common stock of Anchor Co. for $2,800,000. This investment gave Baxter the ability to exercise significant influence over Anchor. Anchor's assets on that date were recorded at $11,700,000 with liabilities of $4,700,000. There were no other differences between book and fair values. During 2020, Anchor reported net income of $600,000. For 2021, Anchor reported net income of $900,000. Dividends of $350,000 were paid in each of these two years. How much income did Baxter report from Anchor for 2021? Multiple Choice $150,000. $220,000. $240,000. O $360,000 $600,000

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