On January 1, 2021, Clement Corporation purchased 30% of Meyer Corporations common stock for $200,000....
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Accounting
On January 1, 2021, Clement Corporation purchased 30% of Meyer Corporations common stock for $200,000. During 2021, Meyer had net income of $400,000 and declared and paid a dividend of $100,000. On December 31, 2021, the fair value of the Meyer stock owned by Clement had decreased to $180,000. How much should Clement report in its 2021 income statement as income from this investment?
$10,000.
$30,000.
$120,000.
$(20,000).
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