Question
[ 10 ] Moss Corp. owns 20% of Dobro Corp.s preferred stock and 80% of its common stock. Dobros stock outstanding at December 31, Year
[ 10 ] Moss Corp. owns 20% of Dobro Corp.s preferred stock and 80% of its common
stock. Dobros stock outstanding at December 31, Year 1, is as follows:
10% cumulative preferred stock
$100,000
Common stock
700,000
Dobro reported net income of $60,000 for the year ended December 31, Y
ear 1. What
amount should Moss record as equity in earnings of Dobro for the year ended
December 31, Year 1?
A. $42,000
B. $48,000
C. $48,400
D. $50,000
[ 10 ] Moss Corp. owns 20% of Dobro Corp.s preferred stock and 80% of its common
stock. Dobros stock outstanding at December 31, Year 1, is as follows:
10% cumulative preferred stock
$100,000
Common stock
700,000
Dobro reported net income of $60,000 for the year ended December 31, Y
ear 1. What
amount should Moss record as equity in earnings of Dobro for the year ended
December 31, Year 1?
A. $42,000
B. $48,000
C. $48,400
D. $50,000
[ 10 ] Moss Corp. owns 20% of Dobro Corp.s preferred stock and 80% of its common
stock. Dobros stock outstanding at December 31, Year 1, is as follows:
10% cumulative preferred stock
$100,000
Common stock
700,000
Dobro reported net income of $60,000 for the year ended December 31, Y
ear 1. What
amount should Moss record as equity in earnings of Dobro for the year ended
December 31, Year 1?
A. $42,000
B. $48,000
C. $48,400
D. $50,000
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Wiley Federal Government Auditing Laws Regulations Standards And Practices
Authors: Edward F. Kearney, Roldan Fernandez, Jeffrey W. Green, David M. Zavada
2nd Edition
1118555856, 978-1118555859
