9. Joe Co. owns 25% of the outstanding ordinary shares of Monkey Co. Monkey has outstanding noncumulative preference shares with aggregate par value of P5,000,000 and fixed dividend rate of 5%, none of which is held by Joe. Monkey reported P2,800,000 profit for the year and declared dividends of P800,000 to preference shareholders and P900,000 to ordinary shareholders. How much investment income should Joe Co. recognize for the year? a. 225,000 b. 500,000 c. 637,500 d. 1,050,000

9. Joe Co. owns 25% of the outstanding ordinary shares of Monkey Co. Monkey has outstanding noncumulative preference shares with aggregate par value of P5,000,000 and fixed dividend rate of 5%, none of which is held by Joe. Monkey reported P2,800,000 profit for the year and declared dividends of P800,000 to preference shareholders and P900,000 to ordinary shareholders. How much investment income should Joe Co. recognize for the year? a. 225,000 b. 500,000 c. 637,500 d. 1,050,000

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter10: Stockholder's Equity

Section: Chapter Questions

Problem 5MCQ

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