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What is X share of Y net income

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Question - On January 1, 2019, X Inc. purchased 25% of the voting shares of Y Inc. for $100,000. The investment is reported using the equity method. Y's net income and declared dividends for the following three years are as follows:

 

Net Income

Dividends

2019

$50,000

$20,000

2020

$70,000

$80,000

2021

$30,000

$60,000

Required -

a. What is X's share of Y's net income for 2020?

b. What would be the carrying value of X's Investment in Y at the end of 2021?

c. Prepare the journal entry to record X's share of Y's net income for 2019?

Reference no: EM132998848

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