Equity method of accounting for investments

Reference no: EM13145570

On February 2, 2006, MBH Inc. acquired 30% of the voting common stock of Construction Corporation as a long term investment. Data from Construction Corporation's financial statements for the year ended December 31, 2006, included the following:

Net income $150,000

Dividends paid 75,000

Prepare any necessary journal entries for MBH at December 31, 2006, under the equity method of accounting for investments.

Reference no: EM13145570

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