Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 2, 2020, howdy doody corporation purcha

On January 2, 2020, Howdy Doody Corporation purchased 14% of Ranger Corporation's common stock for...

60.1K

Verified Solution

Question

Accounting

On January 2, 2020, Howdy Doody Corporation purchased 14% of Ranger Corporation's common stock for $59,000. Ranger's net income for the years ended December 31, 2020, and December 31, 2021, were $12,000 and $55,000, respectively. During 2020, Ranger declared and paid a dividend of $63,000. On December 31, 2020, the fair value of the Ranger stock owned by Howdy Doody had increased to $69,000. How much should Howdy Doody show in the 2020 income statement as income from this investment?

Multiple Choice

  • $16,000.

  • $8,820.

  • $10,000.

  • $18,820.

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

Finance
1.2K views

1. In 1975 the price of a new house was $50,000. In 2015 the price of...

Medical Sciences
1.2K views

Atrioventricular valves close at the beginning and the semilunar valves open at the end of which...

Medical Sciences
1.2K views

What observations did you make during this dissection? Were you surprised by any part of the...

General Management
1.2K views

What is the average family income of people who work in low-wage jobs? Without the resources...

Geometry
1.2K views

he rate of depreciation of a building is given by D t 2000 10 t...

Calculus
1.2K views

Estimate i n 1 2n 1 correct to five decimal places

Accounting
1.2K views

Treat this as a Finance lease for Lessee and a Sales-Type lease for Lessor. Assume...

Accounting
1.2K views

A company purchased a mineral deposit for $800,000. It expects this property to produce 120,000...

Accounting
1.2K views

24. Which of the following is false? Both are true Both are false The direct...

Accounting
1.2K views

Rios Financial Co. is a regional insurance company that began operations on January 1, Year...

Accounting
1.2K views

Chang Company provided the following data for this year: The company uses a predetermined overhead...

Accounting
1.2K views

Required information [The following information applies to the questions displayed below.] Puget World, Incorporated, manufactures...