Essay
Foltz Corporation purchased 3,000 shares of Craver Corporation common stock for $160 per share on January 1,2013,as a long-term investment.Craver reported net income of $140,000 and $180,000 for 2013 and 2014,respectively,and paid dividends of $50,000 and $60,000 during 2013 and 2014,respectively.Craver has a total of 10,000 shares outstanding.Compute the following amounts:
a. Investment income recognized by Foltz Corporation during 2013
b. Balance of Investment in Craver Corporation account at end of 2013
c. Amount of investment income recognized by Foltz Corporation during 2014
d. Balance of Investment in Craver Corporation account at end of 2014
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a. $42,000 (140,000 × 0.3) b. ...View Answer
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