2. 18,000 shares (representing 9%) of ZZ Company stock for $306,000 AA Company and ZZ Company reported the following information for the years 2028 and 2029:
M.T. Glass, Inc. purchased the following investments on
January 1, 2028:
1. 21,000 shares (representing 42%) of AA Company stock
for $546,000
2. 18,000 shares (representing 9%) of ZZ Company stock
for $306,000
AA Company and ZZ Company reported the following information
for the years 2028 and 2029:
2028:
AA Company ZZ Company
Net income $140,000 $225,000
Total dividends paid $ 78,000 $ 53,000
Market value at Dec 31 $33 per share $22 per share
2029:
AA Company ZZ Company
Net income $210,000 $280,000
Total dividends paid $ 90,000 $125,000
Market value at Dec 31 $35 per share $23 per share
Calculate the amount of dividend revenue shown in M.T. Glass,
Inc.'s 2029 income statement for these two investments.
The amount of dividend revenue shown in M.T. Glass, Inc.'s 2029 income statement for these two investments will be proportionate share of dividend as per their % of stock holding .
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