opic tne Atuity ethou Topic: Additional Requirements of ASC 323-10I Blooms: Apply AACSB: Analytic AICPA: FN Measurement Difficulty: 3 Hard The following data applies to Questions 9 11: On January 1 , 20X4, Timber Company acquired 25% of Johnson Company's common stock at underlying book value of $200,000. Johnson has 80,000 shares of $10 par value, 6 percent cumulative preferred stock outstanding. No dividends are in arrears. Johnson reported net income of $270,000 for 20X4 and paid total dividends of $140,000. Timber uses the equity method to account for this investment. 9. Based on the preceding information, what amount would Timber Company receive as dividends from Johnson for the year? A. $23,000 B. S35,000 C. $37,500 25519 Words -- Focus