Question
Khan Enterprises invested BDT 10,000,000 buying shares of Shaikh Corporation in 2021. In 2022, the share price of Shaikh Corporation went up, and Khan Enterprises
Khan Enterprises invested BDT 10,000,000 buying shares of Shaikh Corporation in 2021. In 2022, the share price of Shaikh Corporation went up, and Khan Enterprises investment in Shaikh Corporation is now valued at BDT 100,000,000. The management of Khan Enterprises believes that the share price of Shaikh Corporation will go further up, and given Shaikh Corporations high profitability Khan Enterprises will continue to receive impressive amounts of dividend. Management of Khan Enterprises, thus, has decided against selling the stocks of Shaikh Corporation even after the substantial rise of share price. How will this decision affect Khan Enterprises Income Statement of 2022?
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