5) On January 8, 20X4, Simon Corp. purchased 20% of david Inc. preferred stock and 40% of its common stock. david's stock outstanding at December 31, 20X4, is as follows: 10% Cumulative Preferred Stock = $100,000 Common stock = $700,000 david Inc. reported net income of $60,000 and paid $10,000 in dividends to preferred shareholders for the year ended December 31, 20X4. How much total revenue should Simon record due to its investment in David, Inc.? a. $20,000 b. $22,000 c. $50,000 d. $70,000
5) On January 8, 20X4, Simon Corp. purchased 20% of david Inc. preferred stock and 40% of its common stock. david's stock outstanding at December 31, 20X4, is as follows: 10% Cumulative Preferred Stock = $100,000 Common stock = $700,000 david Inc. reported net income of $60,000 and paid $10,000 in dividends to preferred shareholders for the year ended December 31, 20X4. How much total revenue should Simon record due to its investment in David, Inc.? a. $20,000 b. $22,000 c. $50,000 d. $70,000
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 20EA: Longmont Corporation earned net income of $90,000 this year. The company began the year with 600...
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5) On January 8, 20X4, Simon Corp. purchased 20% of david Inc. preferred stock and 40% of its common stock. david's stock outstanding at December 31, 20X4, is as follows: | |
10% Cumulative Preferred Stock = $100,000 | |
Common stock = $700,000 | |
david Inc. reported net income of $60,000 and paid $10,000 in dividends to preferred shareholders for the year ended December 31, 20X4. How much total revenue should Simon record due to its investment in David, Inc.? | |
a. | $20,000 |
b. | $22,000 |
c. | $50,000 |
d. | $70,000 |
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