Roy Company accounts for its 40% investment in Hubert Corporation under the equity method of...
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Accounting
Roy Company accounts for its 40% investment in Hubert Corporation under the equity method of accounting. The investment was made on January 1, 20X4, at a cost of $650,000. Hubert reported net income of $200,000 for the year ended December 31, 20X4, and paid total dividends of $40,000 during 20X4. On December 31, 20X4, the balance in Roy Companys Investment in Hubert account on its balance sheet will equal
$714,000
$730,000
$746,000
$810,000
$830,000
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To calculate the balance in Roy Companys Investment in Hubert account on December 31 20X4 we will follow these steps 1 Initial Investment Start with the initial investment amount textInitial Investment 650000 2 Share of Huberts Net Income Calculate Roys
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