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What does hess report as income from the investment

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On January 1, 20X7, Hess, Inc. acquired 30% of the outstanding common stock of Wiltown Co. for $1,400,000. This investment gave Hess the ability to exercise significant influence over Wiltown. Wiltown's assets on that date were recorded at $6,400,000 with liabilities of $3,000,000. Any excess of cost over book value of Hess's investment was attributed to unrecorded patents having a remaining useful life of ten years.

  1. In 20X7, Wiltown reported net income of $600,000.

Question 1: What does Hess report as income from this investment for 20X7?

Reference no: EM132460170

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