Question
In its first year of operations, Johnsonville Industries had the following investments: Initial Fair Value Dividends Interest Investment Classification Cost @ Year-End Received Earned 8%
In its first year of operations, Johnsonville Industries had the following investments:
Initial Fair Value Dividends Interest
Investment Classification Cost @ Year-End Received Earned
8% ownership of East, Inc. Equity (Trading) $10,000 $13,500 $1,000 N/A
15% ownership of Burt, Corp. Equity (AFS) $20,000 $14,100 $2,000 N/A
100 bonds of Brady, Inc. Debt (Trading) $30,000 $31,300 N/A $3,000
200 bonds of Bird, Corp. Debt (AFS) $40,000 $43,800 N/A $4,000
300 bonds of Baxton, Corp. Debt (HTM) $50,000 $52,000 N/A $5,000
By what amount will these investments increase Johnsonvilles net income for the year?
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