(Learning Objective 3: Account for transactions using the equity method) McCloud Corporation owns… 1 answer below »

(Learning Objective 3: Account for transactions using the equity method) McCloud Corporation owns equity-method investments in several companies. Suppose McCloud paid $1,675,000 to acquire a 45% investment in Trumpp Software Company. Trumpp Software reported net income of $660,000 for the first year and declared and paid cash dividends of $460,000.