Answer is c. $125,000 Please explain the reasoning and calculations 15. Ziegler Corporation purchased 25.000 shares of common stock of the Sherman CorporationTor 540 per share on January 2, 2017. Sherman Corporation had 100,000 shares of commonstock outstanding during 2018, paid cash dividends of $150,000 during 2018, and reportednet income of $500,000 for 2018. Ziegler Corporation should report revenue from investmentfor 2018 in the amount ofa. $37,500.b. $87,500.C. $125,000.d. $137,500.

Ziegler holds 25000 shares of common stock of Sherman Corporation . Sherman Co has total 100,000…

Answered: 8, paid cash dividends of $150,000…

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8, paid cash dividends of $150,000 during 2018, 18. Ziegler Corporation should report revenue fro-

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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Question

Answer is c. $125,000 Please explain the reasoning and calculations

15. Ziegler Corporation purchased 25.000 shares of common stock of the Sherman Corporation
Tor 540 per share on January 2, 2017. Sherman Corporation had 100,000 shares of common
stock outstanding during 2018, paid cash dividends of $150,000 during 2018, and reported
net income of $500,000 for 2018. Ziegler Corporation should report revenue from investment
for 2018 in the amount of
a. $37,500.
b. $87,500.
C. $125,000.
d. $137,500.

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