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On January 1, 2021, Sue Company paid $100,000 for 8,000 Jerry Company shares, which represents 10 percent of Jerry Companys outstanding common stock. Jerry Company
On January 1, 2021, Sue Company paid $100,000 for 8,000 Jerry Company shares, which represents 10 percent of Jerry Companys outstanding common stock. Jerry Company stock is traded on the NASDAQ stock exchange. Jerry reported net income of $52,000 for the year ended December 31, 2021 and paid dividends of $80,000 during the year. The fair value of the Jerry stock on that date was $45 per share. What is the total income effect of this investment to be reported on the income statement of Sue Company for the year ended December 31, 2021?
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