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Company Y paid $140,000 for 25% of the outstanding stock of Company Z on January1. During the year, Company Z reported $104,000 of net income
Company Y paid $140,000 for 25% of the outstanding stock of Company Z on January1. During the year, Company Z reported $104,000 of net income and paid $40,000 of dividend. How much should Company Y generally report as its share of Company Zs current earnings?
A. $10,000
B. $16,000
C. $26,000
D. $36,000
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