Question
Based on the following data: 1. Gottsbucks paid $500,000 to buy 10,000 shares of Selfie Stick , on January 2, 2018. 2. Selfie Stick declared
Based on the following data:
1. Gottsbucks paid $500,000 to buy 10,000 shares of Selfie Stick, on January 2, 2018.
2. Selfie Stick declared and paid a $1 per share cash dividend on December 15, 2018.
3. Selfie Stick reported Net Income of $600,000 for the year ended December 31, 2018.
4. The fair (market) value of Selfie Stick stock was $55 per share (total value of 10,000 shares is $550,000) on December 31, 2018.
What total dollar amount of revenues will Gottsbucks show on its Income Statement for 2018 related to the Selfie Stick stock, if it owns 10% of the stock of Selfie Stick, and the shares are treated as a Trading Security?
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