, Required information [The following information applies to the questions displayed below.] As a...
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Required information [The following information applies to the questions displayed below.] As a long-term investment, Fair Company purchased 20\% of Midlin Company's 150,000 shares for $180,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $120,000 and distributed cash dividends of $0.30 per share. At year-end, the fair value of the shares is $187,500. Required: 1. Assume no significant influence was acquired. How will the investment in Midlin Company be reflected in the balance sheet and income statement of Fair Company at year-end? Required information [The following information applies to the questions displayed below.] As a long-term investment, Fair Company purchased 20% of Midlin Company's 150,000 shares for $180,000 at the beginning of the reporting year of both companies. During the year, Midlin earned net income of $120,000 and distributed cash dividends of $0.30 per share. At year-end, the fair value of the shares is $187,500. Assume significant influence was acquired. How will the investment in Midlin Company be reflected in the balance sheet and come statement of Fair Company at year-end
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