On January 1, 2012, the Regal Company purchased 30 of the outstanding voting stock of the Air Corporation for $300,000 the book value of Airs net assets at the date of purchase was $900,000 Regal was willing to pay more than the book value of the acquired shares because Airs depreciable assets with a tenyear remaining life was undervalued Regal uses straightline depreciation During 2012, Air reported net income of $75,000 and paid dividends of $30,000 What is the income reported by Regal during 2012 pertaining to the Air investment

Answer rating: 100% (QA)

Solution 19500 Explanation 225... View the full answer