QUESTION 7 S started a new business on Jan 1, 2018. P purchased 30% stock of S on Jan 1 2018 for $200,000. The net income and dividends paid by S for 2018 and 2019 am s follows Year 2018 2019 Net income of S 60,000 40,000 Dividends paid by S 40,000 70,000 Using the cost method, the increase in the net income of P related to its investment in S for the year 2019 will be O $21,000 O $14,000 $12,000 $18,000
QUESTION 7 S started a new business on Jan 1, 2018. P purchased 30% stock of S on Jan 1 2018 for $200,000. The net income and dividends paid by S for 2018 and 2019 am s follows Year 2018 2019 Net income of S 60,000 40,000 Dividends paid by S 40,000 70,000 Using the cost method, the increase in the net income of P related to its investment in S for the year 2019 will be O $21,000 O $14,000 $12,000 $18,000
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 25E
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