Huang Company owns 15,000 of the 50,000 outstanding ordinary shares of Xi Inc. The balance in the investment account at January 1, 2014 was ¥500,000,000. During 2014, Xi earned ¥800,000,000 and paid cash dividends of ¥640,000,000. Huang should report investment revenue for 2014 of

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Huang Company owns 15,000 of the 50,000 outstanding ordinary shares of Xi Inc., which represents a 30% ownership interest. Xi earned ¥800,000,000 and paid cash dividends of ¥640,000,000 during 2014. Huang should report investment revenue for 2014 of ¥240,000,000, which is calculated as follows:Investment revenue = (Net income of Xi Inc. x Ownership interest) + Dividends received= (¥800,000,000 x 30%) + ¥640,000,000= ¥240,000,000

Huang Company Owns 15,000 of the 50,000 Outstanding Ordinary Shares