Parent Co. invested $1,053,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 45% of net income in dividends each year.
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Use the information in the following T-account for the investment in Sub to answer the following questions.
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Investment in Sub Co.
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                                                                                  1,053,000Â
                                                                                     137,100 Â
                                                                                                                   61,695
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(a) How much was Parent Co.’s share of Sub Co.’s net income for the year?
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Net income$
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(b) How much was Parent Co.’s share of Sub Co.’s dividends for the year?
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Dividends$
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(c) What was Sub Co.’s total net income for the year?
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Total net income$
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(d) What was Sub Co.’s total dividends for the year?
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Total Dividends$
Answers
Status NEW
Posted 09 May 2017 07:05 AM
My Price 7.00
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