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Question 4 Purchase 2,000 of the 10,000 shares $50/ share Year 1: Net income of $100,000 Dividends of $8 per share Market value of $60/

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Question 4 Purchase 2,000 of the 10,000 shares $50/ share Year 1: Net income of $100,000 Dividends of $8 per share Market value of $60/ share Year 2: Net income of $100,000 Dividends of $9/ share gilf yoi gnMarket value of $55/ share 2000,000 1. Fair value method 2. Equity method Question 4 Purchase 2,000 of the 10,000 shares $50/ share Year 1: Net income of $100,000 Dividends of $8 per share Market value of $60/ share Year 2: Net income of $100,000 Dividends of $9/ share gilf yoi gnMarket value of $55/ share 2000,000 1. Fair value method 2. Equity method

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