Analyzing and Interpreting Equity Method Investments Stober Company purchases an investment in Lang Company at...
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Analyzing and Interpreting Equity Method Investments Stober Company purchases an investment in Lang Company at a purchase price of $1.2 million cash, representing 30% of the book value of Lang. During the year, Lang reports net income of $110,000 and pays cash dividends of $50,000. At the end of the year, the fair value of Stober's investment is $1.25 million.
c. Stober's $200,000 unrealized gain in investment fair value (choose one): (1) Is not reflected on either its income statement or balance sheet (2) Is reported in its current income (3) Is reported on its balance sheet only (4) Is reported in its other comprehensive income
The answer was not (4)
f. Record each of the transactions from d in the financial statement effects template.
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