Question
ZVI Company owns 15% of the common stock of Two Corporation and used the fair-value method to account for this investment. Two reported net income
ZVI Company owns 15% of the common stock of Two Corporation and used the fair-value method to account for this investment. Two reported net income of $120,000 for 2018 and paid dividends of $50,000 on October 1, 2018. How much income should ZVI recognize on this investment in 2018?
| A. | $16,500 | |
| B. | $7,500 | |
| C. | $9,000 | |
| D. | $25,500 |
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
