ABC Co. purchased 30% of the shares of xYZ Co. on January 1,2022, for $150,000....

50.1K

Verified Solution

Question

Accounting

ABC Co. purchased 30% of the shares of xYZ Co. on January 1,2022, for $150,000. For the year ended December 31,2022,xYZ reported net income of
$180.000 and paid dividends of $120.000.
Assuming that ABC's30% investment in xYZ did not allow it to exercise significant influence, how much income would ABC report from its investment in xYZ for
the year ended December 31,2022?
Multiple Cholce
$54.000
$18.000
$36.000
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students