On january 1, 2018, ramsey company purchased 35% of the outstanding common shares of the vapor company for $70,000 when the net assets were $200,000. during 2018, vapor company earned $80,000 and declared a dividend of $40,000. ramsey accounted for the investment using the equity method. ramsey’s share of vapor’s income for 2018 is:
a. $42,000
b. $28,000
c. $14,000
d. $40,000
Answers: 3
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On january 1, 2018, ramsey company purchased 35% of the outstanding common shares of the vapor compa...
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