Posted: October 27th, 2023
ACCOUNTING GBA 210 Can’t Catch A Break, Inc. began operations in 2013
Can’t Catch A Break, Inc. began operations in 2013 and invested $600,000 in Big Con, Inc. for a 90%interest. Big Con, Inc. posted the following results over the years that follow.2013: Net income of $40,000 and $10,000 in dividends.2014: Net loss of $500,000 and $0 dividends – Investment___________ Equity Income ___________2015: Net loss of $400,000 and $0 dividends – Investment___________ Equity Income ___________2016: Net income $500,000 and $30,000 dividends- Investment__________ Equity Income ___________Required – Assume Can’t Catch A Break, Inc. uses the equity method to account for its investment in Big Con, Inc.Determine the balance in the “Investment in Big Con, Inc” and the âEquity incomeâ in Big Con, Inc.recognized each year
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