During the current year, Winterpeg Enterprises purchased common shares of Lakeview Development Corp. (LDC) for $200,000, received
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During the current year, Winterpeg Enterprises purchased common shares of Lakeview Development Corp. (LDC) for $200,000, received a $2,000 dividend from LDC, and saw the fair value of its investment in LDC increase by $4,000 by year-end. If Winterpeg owns only 5 percent of the shares of LDC, what amount will Winterpeg report on its income statement this year?
a. $2,000
b. $4,000
c. $6,000
d. None of the above.
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Related Book For
Fundamentals Of Financial Accounting
ISBN: 9781265440169
7th Edition
Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby
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