Multiple Choice
If Jensen, Inc. paid $4,000 at book value for its 25% stake in Storm Company, and in the next year total shareholders' equity for Storm Company increases by 75%, what will Jensen's interest of Storm's equity be?
Jensen uses the equity method to account for its investment in Storm Company.
A) $7,000
B) $ 875
C) $1,500
D) $1,375
Correct Answer:
Verified
Correct Answer:
Verified
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