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As a long-term investment at the beginning of the year, Acquisitions, Inc., purchased 3 million shares (30%) of Takeover Target’s 10 million shares outstanding for $35 million. During the year, Takeover Target earned net income of $7.3 million and distributed cash dividends of $0.33 per share.

Required:

Record for Acquisitions, Inc., the purchase of the investment and its share of Takeover Target’s net income and dividends using the equity method.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91395107

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