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Business, 31.05.2020 03:00 juliagearhart9p229te
Pharoah, Inc. acquired 40% of Wildhorse Corporation's voting stock on January 1, 2021 for $1040000. During 2021, Wildhorse earned $412000 and paid dividends of $258000. Pharoah's 40% interest in Wildhorse gives Pharoah the ability to exercise significant influence over Wildhorse's operating and financial policies. During 2022, Wildhorse earned $512000 and paid cash dividends of $158000 on April 1 and $158000 on October 1. On July 1, 2022, Pharoah sold half of its stock in Wildhorse for $672000 cash. Before income taxes, what amount should Pharoah include in its 2021 income statement as a result of the investment
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Pharoah, Inc. acquired 40% of Wildhorse Corporation's voting stock on January 1, 2021 for $1040000....
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