On January 2, 2021, Howdy Doody Corporation purchased 15% of Ranger Corporation's common stock for $80,000. During 2021, Ranger had net income of $120,000 and declared and paid a dividend of $40,000. On December 31, 2021, the fair value of the Ranger stock owned by Howdy Doody had increased to $90,000. How much should Howdy Doody show in the 2021 income statement as income from this investment? Answer: $

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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On January 2, 2021, Howdy Doody Corporation purchased 15% of Ranger Corporation's common
stock for $80,000. During 2021, Ranger had net income of $120,000 and declared and paid a
dividend of $40,000. On December 31, 2021, the fair value of the Ranger stock owned by Howdy
Doody had increased to $90,000. How much should Howdy Doody show in the 2021 income
statement as income from this investment?
Answer: $
Transcribed Image Text:On January 2, 2021, Howdy Doody Corporation purchased 15% of Ranger Corporation's common stock for $80,000. During 2021, Ranger had net income of $120,000 and declared and paid a dividend of $40,000. On December 31, 2021, the fair value of the Ranger stock owned by Howdy Doody had increased to $90,000. How much should Howdy Doody show in the 2021 income statement as income from this investment? Answer: $
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