Rijo Corporation uses the equity method to account for its ownership of 30% of the common stock

Question:

Rijo Corporation uses the equity method to account for its ownership of 30% of the common stock of Pippen Packing. During 2010 Pippen reported a net income of $80,000 and declares and pays cash dividends of $10,000. What recognition should Rijo Corporation give to these events?

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... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...