Equity Method On January 1, 2014, The Miller Corporation purchased 300,000 shares of The Mayfair...
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Finance
Equity Method
On January 1, 2014, The Miller Corporation purchased 300,000 shares of The Mayfair Corporation for $5.7 million. The investment represented 25 percent of The Mayfair Corporations outstanding common shares.
During 2014, Mayfair reported net earnings of $2.25 million and paid a cash dividend of $0.15 per share. During 2015, Mayfair reported a net loss of $180,000 and again paid a dividend of $0.15 per share.
Calculate the book value of Millers investment in Mayfair as of December 31, 2014, and December 31, 2015.
2014
$Answer
2015
$Answer
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