On January 1,2019,Calas Company acquired 40% of the outstanding voting common stock of Nick Company as a long-term investment.During 2019,Nick reported net income of $10,000 and declared and paid dividends of $4,000.During 2019,Calas Company should report equity in investee earnings of:
A)$5,600.
B)$4,000.
C)$2,400.
D)$10,000.

Question

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The Answer of On January 1,2019,Calas Company acquired 40% of the outstanding voting common stock of Nick Company as a long-term investment.During 2019,Nick reported net income of $10,000 and declared and paid dividends of $4,000.During 2019,Calas Company should report equity in investee earnings of:
A)$5,600.
B)$4,000.
C)$2,400.
D)$10,000.

On January 1,2019,Calas Company Acquired 40% of the Outstanding Voting