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On January 1,2019,Palmer,Inc

question 25

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On January 1,2019,Palmer,Inc.bought 40% of the outstanding shares of Arnold Corporation at a cost of $137,000.Palmer uses the equity method of accounting for this investment.During 2019,Arnold Corporation reported $30,000 of net income and paid a total of $10,000 in cash dividends.At the end of 2019,the shares had a fair value of $150,000.
-At the end of 2019,the shares had a fair value of $150,000.What is the amount of Equity in investee earnings for 2019?

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Definitions:

Synthetic Steps

The individual chemical reactions or stages used to manufacture a compound in the laboratory or industry.

Major Organic Product

The core product that is created in the highest quantity during an organic chemical operation.

Reaction

A process in which substances interact to form one or more new substances characterized by a change in their chemical properties or composition.

Organic Chemistry

The branch of chemistry that deals with the structure, properties, and reactions of compounds that contain carbon.

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