Clark Inc. purchased 10% of the 10,000 shares of common stock in Nashville Inc. for $56,000...

Transcribed Image Text:

Clark Inc. purchased 10% of the 10,000 shares of common stock in Nashville Inc. for $56,000 in January. Also, Shay Inc. purchased 35% of the 10,000 shares of common stock in Nashville Inc. for $196,000 in January. In December, Nashville Inc. declared and paid a dividend of $1.40 per share on its outstanding shares of common stock. For each investor, determine the dividend amount received, and its related impact on the Investment and Dividend Revenue accounts. Assume that Shay Inc. (but not Clark Inc.) has significant influence over Nashville Inc. Note: Use a negative sign to indicate a decrease. Dividend Amount Declared and Change in Investment Increase in Dividend Investor Received Account Revenue Clark Inc. $ 1,400 $ 0 $ 1,400 Shay Inc. $ 4,900 $ (4,900) 1,225 x Check Clark Inc. purchased 10% of the 10,000 shares of common stock in Nashville Inc. for $56,000 in January. Also, Shay Inc. purchased 35% of the 10,000 shares of common stock in Nashville Inc. for $196,000 in January. In December, Nashville Inc. declared and paid a dividend of $1.40 per share on its outstanding shares of common stock. For each investor, determine the dividend amount received, and its related impact on the Investment and Dividend Revenue accounts. Assume that Shay Inc. (but not Clark Inc.) has significant influence over Nashville Inc. Note: Use a negative sign to indicate a decrease. Dividend Amount Declared and Change in Investment Increase in Dividend Investor Received Account Revenue Clark Inc. $ 1,400 $ 0 $ 1,400 Shay Inc. $ 4,900 $ (4,900) 1,225 x Check

Answer rating: 100% (QA)

Answer To determine the dividend amount received by each investor and its related impact on the Inve... View the full answer