On January 1, 2020, Oak Corporation paid $900,000 for 87,500 shares of Beech Company's common...

50.1K

Verified Solution

Question

Accounting

On January 1, 2020, Oak Corporation paid $900,000 for 87,500 shares of Beech Company's common stock, which represents 35% of Beechs outstanding common stock. Beech reported income of $300,000 and paid a cash dividend of $100,000 during 2020.

Oak should report income from the investment in Beech Company for 2020 of

a. 300,000

b. 105,000

c. 70,000

d.140,000

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