On January 1, Year 1, Pepper Company acquired 30% of the voting common stock of Salt, Inc.

Question:

On January 1, Year 1, Pepper Company acquired 30% of the voting of Salt, Inc. for $60 per share. Pepper was able to exercise significant influence over the affairs of Salt. Salt had 50,000 common shares outstanding on January 1, Year 1. On July 1, Year 1, Pepper sold all but 500 shares of its investment in Salt, Inc. Pepper held all 500 shares through year-end Year 1. Salt declared and paid a $1 per share on March 31, Year 1, and a $1.50 per share on September 30, Year 1. Salt's net income was exactly $50,000 each quarter.
What amount of revenue should Pepper record for the Year 1 from this investment?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...