If the captured image doesn\'t appear, message me and I\'ll type it ECo holds 35

Question

If the captured image doesn't appear, message me and I'll type it

ECo holds 35% of the outstanding shares of ACo. You are given the following data: For simplicity, assume that there is no goodwill, intangible assets, or profits from intercompany transactions.) Beginning book value of ECo's equity investment in ACo = $50 ACo's reported earnings for the year = $100 (Note that these are ACo's total earnings, not ECo's share of ACo's earnings.) Dividends declared and paid by ACo during the year = $40 (Note that these are ACo's total dividends, not ECo's share of ACo's dividends.) Which one of the following numbers equals the ending book value of ECo's equity investment? $110 S10 S90 S85 $71

Explanation / Answer

$50 + $(100 - 40) = $110

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