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On January 1, 2011, Capitech Corporation acquired Logirun, Inc. as a long-term investment for $240,000 (a 30 percent common stock interest in Logirun). On that date, Logirun had net assets with a book value and current market value of $800,000. During 2011, Logirun reported net income of $90,000 and declared and paid cash dividends of $20,000. What is the maximum amount of income that Capitech should report from this investment for 2011?

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9414739

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