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Grouper plc invested 990,000 in Monty Co. for 25% of its outstanding shares. Monty Co. pays out 40% of net income in dividends each year.

Grouper plc invested £990,000 in Monty Co. for 25% of its outstanding shares. Monty Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Monty to answer the following questions:

(a) How much was Grouper plc's share of Monty Co.'s net income for the year?

(b) How much was Grouper plc's share of Monty Co.'s dividends for the year?

(d) What was Monty Co.'s total dividends for the year?

Investment in Monty Co. 990,000 117,000 46,800

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