Ling Corporation uses the equity method to account for its ownership of 35% of the common stock

Question:

Ling Corporation uses the equity method to account for its ownership of 35% of the common stock of Gorman Packing. During 2017, 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?

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...