Gold Co. received dividends from its common stock investments during the year ended December 31 as follows:*A cash dividend totaling $50,000 from its trading security investment in Hico Corporation, when the market price of Hico's shares was $40 per share*A cash dividend of $20,000 from Garden Corp. in which Gold Co. owns a 32% interestHow much dividend income should Gold report in its income statement? Select one:a. $0b. $20,000c. $50,000d. $30,000

Dividend arising from trading security is an Dividend income

Answered: Gold Co. received dividends from its…

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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Gold Co. received dividends from its common stock investments during the year ended December 31 as follows:

*	A cash dividend totaling $50,000 from its trading security investment in Hico Corporation, when the market price of Hico's shares was $40 per share
*	A cash dividend of $20,000 from Garden Corp. in which Gold Co. owns a 32% interest

How much dividend income should Gold report in its income statement?

Select one:

a. $0

b. $20,000

c. $50,000

d. $30,000

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