Duke Energy Corporation accounts for certain investments under the equity method, and as of December 31, 2014,

Question:

Duke Energy Corporation accounts for certain investments under the equity method, and as of December 31, 2014, Duke reported equity method investments of $358 million on its balance sheet and $390 million on its 2013 balance sheet. Equity income on the income statement totaled $130 million for 2014.
a. Assume that Duke owns approximately 40 percent of the outstanding common stock of the affiliates and made no additional equity investment on sales during 2014. How much net income did the affiliates report for 2014?
b. How much in dividends did Duke receive in 2014?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...

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