Question
ABC company purchased 6,000 shares if XYZ, inc which brings the total outstanding to 20,000. XYZ, inc reports net income of $300,000 and declared and
ABC company purchased 6,000 shares if XYZ, inc which brings the total outstanding to 20,000. XYZ, inc reports net income of $300,000 and declared and paid the dividends of $20,000. What is the net increase/decrease in the investment on ABC's books:
A. $90,000 increase
B. $6,000 decrease
C. $84,000 increase
D. $84,000 decrease
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Financial Accounting The Impact on Decision Makers
Authors: Gary A. Porter, Curtis L. Norton
9th edition
ISBN: 130565417X, 1305654174, 9781285972572 , 978-1285182964
