XYZ Corporation owns 30% of the outstanding common stock of ABC Corporation, which has a total of 500,000 shares outstanding. The fair value of each share of ABC Corporation is $50. XYZ Corporation has significant influence over ABC Corporation but does not have control over it. During the year, ABC Corporation reports net income of $3,000,000 and pays a dividend of $2 per share. What is the amount of income that XYZ Corporation will recognize from its investment in ABC Corporation using the equity method? Show all calculations.

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Given data Number of outstanding shares ... View the full answer