Question
On January 1, Sons purchased 10% of Heller's common stock. On September 1, it purchased another 30% of Heller's common stock. During November, Heller declared
On January 1, Sons purchased 10% of Heller's common stock. On September 1, it purchased another 30% of Heller's common stock. During November, Heller declared and paid a cash dividend on its common stock. How much income from Heller should Sons report on its income statement?
Select one:
A. 10% of Heller's income for January 1 to August 31, plus 40% of Heller's income for the remainder of the year
B. 40% of Heller's income from September 1 to December 31 only
C. 30% of Heller's income
D. The amount of dividends received from Heller
**options A and D are incorrect, please say which one is correct and explain why**
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