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Why does recognition of equity earnings cause problems in analysis

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Why does recognition of equity earnings cause problems in analysis Patricia Company owns 25% of Sandra Company and accounts for the investment on the equity basis and does not consolidate. At the beginning of 2010, the investment in Sandra Company was $180,000. In 2010, Sandra Company earned $70,000 and paid dividends of $10,000. Required: a. How much will Patricia Company report as equity in earnings of Sandra Company in 2010? b. How much cash flow will Patricia Company receive from Sandra Company in 2010? c. Why does recognition of equity earnings cause problems in analysis? Economics Assignment Help, Economics Homework help, Economics Study Help, Economics Course Help

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