2- Gator plc invested £1,000,000 in Demo Co. for 25% of its outstanding shares. Demo Co. pays out 30% of net income in dividends each year. Instructions Use the information in the following T-account for the investment in Demo to answer the following questions. Investment in Demo Co. 1,000,000 140,000 42,000 (a). How much was Gator plc's share of Demo Co.'s net income for the year? (b). How much was Gator plc's share of Demo Co.'s dividends for the year? (c). What was Demo Co.'s total net income for the year? (d). What was Demo Co.'s total dividends for the year?

2- Gator plc invested £1,000,000 in Demo Co. for 25% of its outstanding shares. Demo Co. pays out 30% of net income in dividends each year. Instructions Use the information in the following T-account for the investment in Demo to answer the following questions. Investment in Demo Co. 1,000,000 140,000 42,000 (a). How much was Gator plc's share of Demo Co.'s net income for the year? (b). How much was Gator plc's share of Demo Co.'s dividends for the year? (c). What was Demo Co.'s total net income for the year? (d). What was Demo Co.'s total dividends for the year?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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