James Co. owns 8,000 of the 20,000 outstanding shares of Lamp Corp. common stock andexercises significant influence over the company. During 2019, Lamp earns $200,000 andpays cash dividends of $80,000. For the year ended December 31, 2019, James Co. shouldreport income related to the investment equal to:○ $0O $72,000$80,000O $32,000

Information given in the question,Total number of shares=20000Number of shares owned by James Co.=…

Answered: pays cash dividends of $80,000. For the…

pays cash dividends of $80,000. For the year ended December 31, 2019, James Co. should report income related to the investment equal to:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 14RE

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