Question
Brown Corporation earns $480,000 net income and pays cash dividends of $160,000 during 2014. Dexter Corporation owns 2,000 of the 10,000 outstanding shares of Brown
Brown Corporation earns $480,000 net income and pays cash dividends of $160,000 during 2014.
Dexter Corporation owns 2,000 of the 10,000 outstanding shares of Brown and uses the Equity method How much investment should Dexter report in 2014?
Select one:
a. $160,000.
b. $144,000.
c. $96,000.
d. $480,000.
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Accounting Texts and Cases
Authors: Robert Anthony, David Hawkins, Kenneth Merchant
13th edition
1259097129, 978-0073379593, 007337959X, 978-1259097126
