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Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2018. During 2018, Darby Company declared
Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2018. During 2018, Darby Company declared dividends of $100,000 and reported earnings for the year of $400,000. If Blanco Company uses the fair value method of accounting for its investment in Darby Company, the income related to this investment for year 2018
$100,000. | ||
$400,000. | ||
$20,000. | ||
$80,000. |
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