Question
Shamrock Co. invested $1,040,000 in Bridgeport Co. for 25% of its outstanding stock. Bridgeport Co. pays out 40% of net income in dividends each year.
Shamrock Co. invested $1,040,000 in Bridgeport Co. for 25% of its outstanding stock. Bridgeport Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Bridgeport to answer the following questions.
| Investment in Bridgeport Co. | |
|---|---|
| 1,040,000 | |
| 109,000 | |
| 43,600 | |
(a) How much was Shamrock Co.s share of Bridgeport Co.s net income for the year?
| Net income | $ enter Shamrocks net income in dollars |
(b) What was Bridgeport Co.s total net income for the year?
| Total net income | $enter the total net income of BridgeportCo. for the year |
(c) What was Bridgeport Co.s total dividends for the year?
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Fraud examination
Authors: Steve Albrecht, Chad Albrecht, Conan Albrecht, Mark zimbelma
4th edition
538470844, 978-0538470841
