Dubro reported net income of $60,000 and paid dividends of $10,000 to its preferred shareholders for the year ended December 31, Year 1. How much total revenue should Moss record due to its investment in Dubro (a) $22,000 b) $20,000 2,000 c) $70,000 d) $50,000 50,000 3,000 48000

Dubro reported net income of $60,000 and paid dividends of $10,000 to its preferred shareholders for the year ended December 31, Year 1. How much total revenue should Moss record due to its investment in Dubro (a) $22,000 b) $20,000 2,000 c) $70,000 d) $50,000 50,000 3,000 48000

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

15)
Moss Corp. owns 20 percent of Dubro Corp's preferred stock and 50 percent of its common
stock. Dubro's stock outstanding at December 31, year 1 is as follows:
10% cumulative preferred stock
$100,000
Common stock
700,000
Dubro reported net income of $60,000 and paid dividends of $10,000 to its preferred
shareholders for the year ended December 31, Year 1. How much total revenue should Moss
record due to its investment in Dubro
(a) $22,000
the 2,000
50,000
3,000
b) $20,000
c) $70,000
d) $50,000
16) Birk Co purchased 30% of Sled. Go outstanding common stock on December 31 for $200.000.
48000

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