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On January 1, 2010, Franel Co. acquired all of the common stock of Hurlem Corp. For 2010, Hurlem earned net income of $360,000 and paid dividends of $190,000. Amortization of the patent allocation that was included in the acquisition was $6,000. How much difference would there have been in Franel's income with regard to the effect of the investment, between using the equity method or using the initial value method of internal recordkeeping?
Input Shaft Speed Sensor
A sensor used to monitor the speed at which the input shaft is spinning in a vehicle's transmission, aiding in shift timing and control strategies.
Shifter Module
A component in a vehicle that enables the driver to change gears manually or automatically.
Nominal Torque Rating
The standard or average torque output that a machine, engine, or system is rated to produce under normal operating conditions.
AutoShift Transmission
An automated manual transmission that combines manual gear selection with automatic control of the clutch, allowing for semi-automatic or fully automatic driving without a traditional clutch pedal.
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