Equity Method
On January 1, 2011, The Miller Corporation purchased 300,000 shares of The Mayfair
Corporation for $5.7 million. The investment represented 40% of The Mayfair Corporation's
outstanding common shares. During 2011, Mayfair reported net earnings of $2.25 million and
paid a cash dividend of $0.15 per share. During 2012, Mayfair reported a net loss of $180,000
and again paid a dividend of $0.15 per share. Calculate the book value of Miller's investment in
Mayfair as of December 31, 2011, and December 31, 2012.
2011 Answer
2012 Answer.
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Equity MethodOn January 1, 2011, The Miller Corporation purchased .pdf
1. Equity Method
On January 1, 2011, The Miller Corporation purchased 300,000 shares of The Mayfair
Corporation for $5.7 million. The investment represented 40% of The Mayfair Corporation's
outstanding common shares. During 2011, Mayfair reported net earnings of $2.25 million and
paid a cash dividend of $0.15 per share. During 2012, Mayfair reported a net loss of $180,000
and again paid a dividend of $0.15 per share. Calculate the book value of Miller's investment in
Mayfair as of December 31, 2011, and December 31, 2012.
2011 Answer
2012 Answer
