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In its first year of operations, Johnsonville Industries had the following investments: Investment 8% ownership of East, Inc. 15% ownership of Burt, Corp. 100 bonds
In its first year of operations, Johnsonville Industries had the following investments: Investment 8% ownership of East, Inc. 15% ownership of Burt, Corp. 100 bonds of Brady, Inc. 200 bonds of Bird, Corp. Classification Equity (Trading) Equity (AFS) Debt (Trading) Debt (AFS) Initial Cost $10,000 $20,000 $30,000 $40,000 Fair Value @ Year-End $13,500 $14,100 $31,300 $43,800 Dividends Received $1,000 $2,000 N/A N/A Interest Earned N/A N/A $3,000 $4,000 By what amount will these investments increase Johnsonville's net income for the year? Multiple Choice $12,700 $2,700 $8.900 $10,000
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