Question
Sandhill Co. invested $920,000 in Teal Co. for 25% of its outstanding stock. Teal Co. pays out 30% of net income in dividends each year.
Sandhill Co. invested $920,000 in Teal Co. for 25% of its outstanding stock. Teal Co. pays out 30% of net income in dividends each year. Use the information in the following T-account for the investment in Teal to answer the following questions.
| Investment in Teal Co. | |
| 920,000 | |
| 99,000 | |
| 29,700 | |
(a) How much was Sandhill Co.s share of Teal Co.s net income for the year?
b) What was Teal Co.s total net income for the year? c) What was Teal Co.s total dividends for the year? (d) How much was Sandhill Co.s share of Teal Co.s dividends for the year?
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Security Audit And Control Features SAP ERP
Authors: Deloitte Touche Tohmatsu Research Team And Isaca
3rd Edition
1604201150, 978-1604201154
