On January 1, 2014, Calas Company acquired 40% of the outstanding voting common stock of Nick Company as a long-term investment. During 2014, Nick reported net income of $10,000 and declared and paid dividends of $4,000. During 2014, Calas Company should report equity in affiliate earnings of
A) $5,600.
B) $4,000.
C)$2,400.
D)$10,000.

Question

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The Answer of On January 1, 2014, Calas Company acquired 40% of the outstanding voting common stock of Nick Company as a long-term investment. During 2014, Nick reported net income of $10,000 and declared and paid dividends of $4,000. During 2014, Calas Company should report equity in affiliate earnings of
A) $5,600.
B) $4,000.
C)$2,400.
D)$10,000.

On January 1, 2014, Calas Company Acquired 40% of the Outstanding