Question
James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock and exercises significant influence over the company. During 2019, Lamp earns
James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock and exercises significant influence over the company. During 2019, Lamp earns $200,000 and pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should report income related to the investment equal to:
Group of answer choices
$0
$72,000
$80,000
$32,000
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
