the equity method is applied throughout Year 7.
Net carrying value, Jan. 1, Year 7 ....................................................... $ 110
Add: Original cost of additional shares (290 shares x $11) ............ 3,190
Add: Percentage share of Year 7 earnings (30% x $2,200) ............. 660
Less: Dividends received in Year 7 .................................................... (360)
Net carrying value at Dec. 31, Year 7 ................................................. $3,600
the equity method is applied throughout Year 7.Net carrying value, Jan. 1, Year 7 ....................................................... $ 110Add: Original cost of additional shares (290 shares x $11) ............ 3,190Add: Percentage share of Year 7 earnings (30% x $2,200) ............. 660Less: Dividends received in Year 7 .................................................... (360)Net carrying value at Dec. 31, Year 7 ................................................. $3,600
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