Question
on January 1,2020, ABC, company purchased 3,000 shares of Vancouver Company at a cost of $31 each plus a brokerage fee of $1500. These 3,000
on January 1,2020, ABC, company purchased 3,000 shares of Vancouver Company at a cost of $31 each plus a brokerage fee of $1500. These 3,000 shares represent a 17% interest in Vancouver company. during the year, Vancouver company reported net income of $150000 and declared and paid dividends totaling $80000. At December 31,2020, the shares of Vancouver company were trading at $36 each. Assuming BC company is accounting for this investment using the Cost model, how much in the net income (not OCI) did this investment generate for BC company during 2020?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started