Question
On January 2, 2016, Fresco Flooring purchased 15,000 shares of the stock of Woodworks Corp, and did not obtain significant influence. The investment is intended
On January 2, 2016, Fresco Flooring purchased 15,000 shares of the stock of Woodworks Corp, and did not obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $12 per share, and represents a 15% ownership stake. Woodworks Corp made $25,000 of net income in 2016, and paid dividends of $10,000 on December 15, 2016. On December 31, 2016, Woodworks Corp stock was trading on the open market for $11 per share at the end of the year.
Use this information to determine the dollar amounts that should be reported by Fresco Flooring during 2016 for the following items:
- Dividend Income
- Unrealized Gain/Loss - OIC
- Available for Sales Securities
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