Park CoUses the Equity Method to Account for Its January 1,20X5,purchase

question 60

Short Answer

Park Co.uses the equity method to account for its January 1,20X5,purchase of Tun Inc.'s common stock.On January 1,20X5,the fair values of Tun's depreciable assets and land exceeded their carrying amounts.How do these excesses of fair values over carrying amounts affect Park's reported year-end Earnings from Investment in Tun for 20X5?

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