On February 2, 2020, Groove Company purchased 16% of Pop Company's common stock for $57,000. Pop's net income for the years ended December 31, 2020, and December 31, 2021, were $18,000 and $56,000, respectively. On July 30, 2020, Pop declared and paid a dividend of $63,500. On December 31, 2020, the fair value of the Pop stock owned by Groove had increased to $73,000.

How much should Groove show in the 2020 income statement as income from this investment?

Answer rating: 100% (QA)

Net income of Pop Company for the year ended December 31 2020 18000 ... View the full answer