Question
Tamarisk Co. invested $940,000 in Vaughn Co. for 25% of its outstanding stock. Vaughn Co. pays out 40% of net income in dividends each year.
Tamarisk Co. invested $940,000 in Vaughn Co. for 25% of its outstanding stock. Vaughn Co. pays out 40% of net income in dividends each year. Use the information in the following T-account for the investment in Vaughn to answer the following questions.
| Investment in Vaughn Co. | |
|---|---|
| 940,000 | |
| 105,000 | |
| 42,000 | |
(a) How much was Tamarisk Co.s share of Vaughn Co.s net income for the year?
(b) What was Vaughn Co.s total net income for the year? (c) What was Vaughn Co.s total dividends for the year?
(d) How much was Tamarisk Co.s share of Vaughn Co.s dividends for the year?
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Executive Roadmap To Fraud Prevention And Internal Control Creating A Culture Of Compliance
Authors: Joel T. Bartow, Martin T. Biegelman
2nd Edition
1118004582, 9781118004586
