Question
ABC Company gained significant influence over Y Company by purchasing 30 percent of the common stock of the Y Company for SR100, 000, Y earned
ABC Company gained significant influence over Y Company by purchasing 30 percent of the common stock of the Y Company for SR100, 000, Y earned income of SR 60,000 and pays dividends of SR. 20,000. ABC
Company's income and dividends are recorded as:
a.20,000 and 60,000
b.60,000 and 20,000
c. 18,000 and 6,000
d.4,000 and 18,000
ABC Company gained significant influence over Y Company by purchasing 30 percent of the common stock of the Y Company for SR100, 000, Y earned income of SR 60,000 and pays dividends of SR. 20,000. ABC
Company's income and dividends are recorded as:
a.20,000 and 60,000
b.60,000 and 20,000
c. 18,000 and 6,000
d.4,000 and 18,000
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
9781285586618
