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Pepito company purchased 40 of the outstanding stock of

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Pepito Company purchased 40% of the outstanding stock of Reyes Company on January 1, 2010. Reyes reported net income of $75,000 and declared dividends of $20,000 during 2010. How much would Pepito adjust their investment in Reyes Company under the equity method?

Reference no: EM13579571

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