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On January 2, 2016, Pam Corporation bought 15 percent of Sun Corporation's capital stock for $30,000. Pam accounts for this investment using the cost method.
On January 2, 2016, Pam Corporation bought 15 percent of Sun Corporation's capital stock for $30,000. Pam accounts for this investment using the cost method. Sun's net income for the years ended December 31, 2016, and December 31, 2017, were $20,000 and $100,000, respectively. During 2017 Sun declared a dividend of $140,000. No dividends were declared in 2016. How much should Pam report on its 2017 income statement as income from this investment? Select one 0 a. $21,000 O b. $15,000 c. $18,000 d. $3,156
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