**Question:**Wyatt Company acquired 30% interest in the voting stock of Staples Inc. for $650,000. During the first year, Staples Inc. reported net income of $240,000 and paid cash dividends totaling $60,000. What amount will Wyatt Company report on its income statement related to its investment in Staples Inc.?- ○ $240,000- ○ $54,000- ○ $60,000- ○ $18,000- ○ $72,000**Explanation:**To determine how much Wyatt Company will report on its income statement related to its investment in Staples Inc., we have to calculate Wyatt's share of the net income.1. **Net Income Share:** - Wyatt owns 30% of Staples Inc.'s stock. - Share of Net Income = 30% of $240,000 = 0.30 * $240,000 = $72,000So, Wyatt Company will report $72,000 on its income statement as its share of Staples Inc.'s net income.

ANSWER:- $ 54,000 is correct answer $54,000 amount will wyatt company report on its income statement…

Wyatt Company acquired 30% interest in the voting stock of Staples Inc. for $650,000. During the first year, Staples Inc. reported net income of $240,000 and paid cash dividends totaling $60,000. What amount will Wyatt Company report on its income statement related to its investment in Staples Inc? O $240,000 O $54,000 O $60.000 O $18,000 $72,000

Wyatt Company acquired 30% interest in the voting stock of Staples Inc. for $650,000. During the first year, Staples Inc. reported net income of $240,000 and paid cash dividends totaling $60,000. What amount will Wyatt Company report on its income statement related to its investment in Staples Inc? O $240,000 O $54,000 O $60.000 O $18,000 $72,000

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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