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On January 1, 2024, MNO purchased 30 percent of the 10,000 shares of the outstanding...

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Accounting

On January 1, 2024, MNO purchased 30 percent of the 10,000 shares of the outstanding common shares, of RST for $60,000 cash (and properly computed goodwill of $5,000 amortizable over 10 years). On December 31, 2024, RST reported net income of $40,000 and declared a cash dividend of $2 per share. Select the appropriate combination below for the December 31, 2024, account balances to be reported by MNO.

Balance sheet-DEC. 31, 2024 Income Statement-2024
Investment Account Investment Revenue
1) $60,000 $6,000
2) $65,500 $5,500
3) $65,500 $11,500
4) $65,500 $12,000

Multiple Choice

Choice 1

Choice 2

Choice 3

Choice 4

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