Question: Ling Corporation uses the equity method to account for its ownership of 35% of the common stock of Gorman Packing. During 2014, Gorman reported a

Ling Corporation uses the equity method to account for its ownership of 35% of the common stock of Gorman Packing. During 2014, Gorman reported a net income of $80,000 and declares and pays cash dividends of $10,000. What recognition should Ling Corporation give to these events?

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