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Exercise 17-13 Parent Co. invested $1,182,000in Sub Co. for 25% of its outstanding stock. Sub Co. pays out40% of net income in dividends each year.
Exercise 17-13
Parent Co. invested $1,182,000in Sub Co. for 25% of its outstanding stock. Sub Co. pays out40% of net income in dividends each year.
Use the information in the following T-account for the investment in Sub to answer the following questions.
Investment in Sub Co. | |
1,182,000 | |
132,900 | |
53,160 |
(a)How much was Parent Co.s share of Sub Co.s net income for the year?
Net income | $ |
(b)How much was Parent Co.s share of Sub Co.s dividends for the year?
Dividends | $ |
(c)What was Sub Co.s total net income for the year?
Total net income | $ |
(d)What was Sub Co.s total dividends for the year?
Total Dividends | $ |
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