Question
On January 1, 2009, Halley Company acquired 8 percent of the outstanding common stock of Ghosh Corporation for $650,000. Halley appropriately uses the cost method
On January 1, 2009, Halley Company acquired 8 percent of the outstanding common stock of Ghosh Corporation for $650,000. Halley appropriately uses the cost method to account for its investment in Ghosh. Ghosh reported net income and paid dividends for the years ended 2009, 2010, and 2011, as follows:
| Year | Net Income | Dividends |
| 2009 | $100,000 | $70,000 |
| 2010 | $70,000 | $70,000 |
| 2011 | $30,000 | $70,000 |
Based on the above information the amount of income related to its investment in Ghosh to be reported by Halley for the year 2011 is:
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Statistics For Engineers And Scientists
Authors: William Navidi
4th Edition
73401331, 978-0073401331
