Equity income should investor report in its income statement

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Reference no: EM131221075

An investor owns 35% of the outstanding common stock of an investee company. The Equity Investment was reported at $400,000 as of the end of the previous year. During the year, the investee pays dividends of $40,000 to the investor. The investee reports the following income statement for the year:

Revenues $1,600,000

Expenses 1,256,000

Net income $344,000

a. How much equity income should the investor report in its income statement?

b. What amount should the investor report for the Equity Investment in its balance sheet at the end of the year?

Reference no: EM131221075

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Equity income should investor report in its income statement : An investor owns 35% of the outstanding common stock of an investee company. The Equity Investment was reported at $400,000 as of the end of the previous year. During the year, the investee pays dividends of $40,000 to the investor. How much equity i..

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