Question
1.Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence. 2.The investment is intended as a long-term investment.
1.Alpha Company purchased 10,000 shares of the stock of Zulu Company, and did not obtain significant influence.
2.The investment is intended as a long-term investment.
3.The stock was purchased for $10 per share, and represents a 10% ownership stake.
4.Zulu Company made $25,000 of net income in 2017, and paid dividends of $10,000 on December 15, 2017.
5.On December 31, 2017, Zulu Company's stock was trading on the open market for $12 per share at the end of the year.
6.Use this information to determine the dollar amounts that should be reported by Alpha Company during 2017 for the following items:
a. Dividend Income
b. Unrealized Gain/Loss - OIC (If a loss, enter the amount with dollar sign inside of brackets)
c. Available-for-Sales Securities
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