On December 31, 2017, Rory Corp. acquired an 18% interest in Batson Corp. for $100,000 and appropriately applied the mark-to-market method. During 2018, Batson had net income of $200,000 and paid cash dividends of $50,000. On the last day of 2018, Rory sold one-half of its investment in Batson Corp. for $180,000. How much should Rory report on its income statement for the year ending December 31, 2018? Show your work.

Question

Quizplus · Accepted Answer

The Answer of On December 31, 2017, Rory Corp. acquired an 18% interest in Batson Corp. for $100,000 and appropriately applied the mark-to-market method. During 2018, Batson had net income of $200,000 and paid cash dividends of $50,000. On the last day of 2018, Rory sold one-half of its investment in Batson Corp. for $180,000. How much should Rory report on its income statement for the year ending December 31, 2018? Show your work.