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On January 1, Dyer Co. acquired as a long-term investment a 20% common stock interest in Eason Co. Dyer paid $700,000 for this investment

when the fair value and carrying amount of Eason’s net assets was $3.5 million. Dyer can exercise significant influence over Eason’s operating and financial policies. For the year ended December31, Eason reported net income of $400,000 and declared and paid cash dividends of $160,000. How much revenue from this investment should Dyer report for the year?

A. $32,000

B. $48,000

C. $80,000

D. $112,000

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Question added by Deleted user
Date Posted: 2015/03/06
Mahesh Shrestha
by Mahesh Shrestha , Finance Consultant- Part time (Freelancer) , Dhapasi General Store

Answer for the question  is C- $80,000.

VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
by VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

Answer option C   >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>   $80,000--

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