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Business, 31.07.2019 18:20 tryintopassenioryear

Aparent company paid $500,000 for a 100% interest in a subsidiary. at the end of the first year, the subsidiary reported net income of $40,000 and paid $5,000 in dividends. the price paid reflected understated equipment of $70,000, which will be amortized over 10 years. what would be the3 subsidiary income reported on the parent’s unconsolidated income statement, and would the parent’s investment balance be at the end of the first year under each the simple equity method, the sophisticated equity method and the cost method?

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Aparent company paid $500,000 for a 100% interest in a subsidiary. at the end of the first year, the...
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