Johnson inc. purchases 21% of the voting stock of xyz company. this is sufficient to give johnson significant influence over xyz. if johnson elects to apply fair-value accounting to this investment, then any dividends xyz pays to johnson will be treated as an addition to the investment in xyz account treated as a reduction to goodwill treated as dividend income to johnson treated as a reduction to the investment in xyz acc

Jeanie had always been interested in how individuals and businesses effectively allocate their resources in order to accomplish personal and organizational goals. that’s why she majored in economics and took on an entry-level position at an accounting firm. she is very interested in further advancing her career by looking into a specialization that builds upon her academic background, and her interest in deepening her understanding of how companies adjust their operating results to incorporate the economic impacts of their practices on internal and external stakeholders. which specialization could jeanie follow to get the best of both worlds? jeanie should chose to get the best of both worlds.