Mary Corporation buys 10% of the 200,000 outstanding voting shares of Joseph Ltd. on January 1, 2022
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Question:
Mary Corporation buys 10% of the 200,000 outstanding voting shares of Joseph Ltd. on January 1, 2022 for $150,000. On September 20, 2022, Joseph declared and paid a dividend of $100,000 to its shareholders. On October 1, 2022, Mary declared and paid a dividend of $250,000 to its shareholders. On December 31, 2022, Joseph's shares were trading at $9.25. The investment in Joseph was classified as a FVOCI investment. What amount of income would be included in the profit and loss portion of the statement of income?
$45,000
$35,000
$10,000
$0
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781119740445
13th Canadian Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Irene M. Wiecek, Bruce J. McConomy
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