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  3. 17. mccoy corporation purchased 7,400 shares of ch

17. McCoy Corporation purchased 7,400 shares of Chudzick Company's common stock. The purchase price was...

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Accounting

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17. McCoy Corporation purchased 7,400 shares of Chudzick Company's common stock. The purchase price was $362,600, which is equal to 50% of Chudzick Company's retained earnings balance. Chudzick Company's 46,000 shares of common stock are actively traded, and each share has a par value of $10. McCoy Corporation should account for this long-term investment using the: A. fair value method. B. equity method C. consolidation method. D. amortized cost method

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