net income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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15.On January 2, 2020, Howdy Doody bought 15% of Ranger's common stock for $ 54,000. Ranger's net income as of December 31, 2020 was $ 80,000. During 2020, Ranger declared and paid dividends of $ 64,000. As of December 31, 2018, the market value of Howdy Doody-owned Ranger shares had risen to $ 69,000. How much is Howdy's total effect on net income caused by investing in Ranger for 2020?
Select one:
a. $ 15,000.
b. $ 21,000.
c. $ 24,600.
d. $ 9,600.
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