pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should report income related to the investment equal to:

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock and
exercises significant influence over the company. During 2019, Lamp earns $200,000 and
pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should
report income related to the investment equal to:
○ $0
O $72,000
$80,000
O $32,000
Transcribed Image Text:James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock and exercises significant influence over the company. During 2019, Lamp earns $200,000 and pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should report income related to the investment equal to: ○ $0 O $72,000 $80,000 O $32,000
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