Suppose Zerba Company owns 30% of Stallings Company. Stallings Company earns $180,000 and pays total dividends of

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Suppose Zerba Company owns 30% of Stallings Company. Stallings Company earns $180,000 and pays total dividends of $40,000 to its shareholders. What appears on the income statement of Zerba Company as a result of Stallings’ activity? What would be the change in the account titled Investment in Equity Affiliates on Zerba’s balance sheet?

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Introduction to Financial Accounting

ISBN: 978-0133251036

11th edition

Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick

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