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how to calculate investment return of an investment
Question
Harrison Co. owns 40% of the 50,000 outstanding shares of Taylor, Inc. common stock and uses the equity method to account for this investment. During 2013, Taylor earns. $1,200,000 and pays cash dividends of $960,000.
Harrison should report investment income for 2013 of
a. $480,000.
b. $384,000.
c. $96,000.
d. $0.
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