Business, 10.04.2020 00:42 ferny5106

Suppose that on January 6, 2018, East Coast Motors paid $ 280,000,000 for its 35 % investment in Boxcar Motors. East Coast has significant influence over Boxcar after the purchase. Assume Boxcar earned net income of $ 90,000,000 and paid cash dividends of $ 45,000,000 to all outstanding stockholders during 2018. (Assume all outstanding stock is voting stock.)

What method should East Cost Motors use to account for the investment in Boxcar Motors?

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Suppose that on January 6, 2018, East Coast Motors paid $ 280,000,000 for its 35 % investment in Box...