Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method to
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Question:
Yaro Company owns 30% of the common stock of Dew Co. and uses the equity method to account for the investment. During 2018, Dew reported income of $250,000 and paid dividends of $80,000. There is no amortization associated with the investment. During 2018, how much income should Yaro recognize related to this investment?
Multiple Choice
- $24,000.
- $75,000.
- $99,000.
- $51,000.
- $80,000.
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