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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Fundamentals Of Financial Accounting

ISBN: 9781265440169

7th Edition

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

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