Providence Corporation makes an equity-method investment in Southampton Inc. at a purchase price of $3.4...
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Providence Corporation makes an equity-method investment in Southampton Inc. at a purchase price of $3.4 million cash, representing 30% (at book value) of Southampton. During the year, Southampton reports net income of $985,000 and Providence receives $675,000 of cash dividends from Southampton. At the end of the year, the market value of Providence's investment is $3.1 million.
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