Question
. On January 1, 2011 Taylor Inc. purchased 10,000 of the 100,000 outstanding shares of common stock of Swanson Company for $30 per share.
. On January 1, 2011 Taylor Inc. purchased 10,000 of the 100,000 outstanding shares of common stock of Swanson Company for $30 per share. The records of Swanson Company reported the following on December 31, 2010: Net Income Dividends declared and paid Market price per share $250,000 $20,000 $31 Taylor Inc. should report investment income on its income statement in the amount of: A) $20,000 B) $6,000 C) $12,000 D) $2,000 E) $25,000
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