On January 1,2019,Alden Company acquired 15,000 shares (4%)of the nonvoting preferred stock of Maxim Corporation as a long-term investment for $225,000.Maxim reported a 2019 net income of $35,000.On January 2,2020,Maxim declared and paid a $10,000 cash dividend on the preferred stock.The fair value of the Maxim stock held by Alden on December 31,2019,was $224,000.Alden Company has recorded only the following journal entries:
January 1,2019:
December 31,2019 (end of the accounting period):
No entry
January 2,2020:
Based on the above information,answer the following questions:

Question

On January 1,2019,Alden Company acquired 15,000 shares (4%)of the nonvoting preferred stock of Maxim Corporation as a long-term investment for $225,000.Maxim reported a 2019 net income of $35,000.On January 2,2020,Maxim declared and paid a $10,000 cash dividend on the preferred stock.The fair value of the Maxim stock held by Alden on December 31,2019,was $224,000.Alden Company has recorded only the following journal entries:
January 1,2019:
  December 31,2019 (end of the accounting period):
No entry
January 2,2020:
  Based on the above information,answer the following questions:

Quizplus · Accepted Answer

The Answer of On January 1,2019,Alden Company acquired 15,000 shares (4%)of the nonvoting preferred stock of Maxim Corporation as a long-term investment for $225,000.Maxim reported a 2019 net income of $35,000.On January 2,2020,Maxim declared and paid a $10,000 cash dividend on the preferred stock.The fair value of the Maxim stock held by Alden on December 31,2019,was $224,000.Alden Company has recorded only the following journal entries:
January 1,2019:
  December 31,2019 (end of the accounting period):
No entry
January 2,2020:
  Based on the above information,answer the following questions:

On January 1,2019,Alden Company Acquired 15,000 Shares (4%)of the Nonvoting