Osaka Co. acquired a 10% interest in Chen Corp. on December 31, 2013 for HK$3,780,000. During 2014, Chen had net income of HK$2,400,000 and paid cash dividends of HK$600,000. Osaka's 2014 income statement will report

Question

Quizplus · Accepted Answer

Osaka Co. owns a 10% interest in Chen Corp., so it will report 10% of the dividends received as dividend income. 10% of HK$600,000 is HK$60,000.

Osaka Co Acquired a 10% Interest in Chen Corp