On January 1, 2017, Redwood Creek Company purchased 5,000 shares of Monticello Company stock for $300,000. Redwood Creek's investment represents 30 percent of the total outstanding shares of Monticello. During 2017, Monticello paid total dividends of $100,000 and reported net income of $290,000. What revenue does Redwood report related to this investment and what is the amount to be reported as an investment in Monticello stock at December 31.

Question

Quizplus · Accepted Answer

The Answer of On January 1, 2017, Redwood Creek Company purchased 5,000 shares of Monticello Company stock for $300,000. Redwood Creek's investment represents 30 percent of the total outstanding shares of Monticello. During 2017, Monticello paid total dividends of $100,000 and reported net income of $290,000. What revenue does Redwood report related to this investment and what is the amount to be reported as an investment in Monticello stock at December 31.

On January 1, 2017, Redwood Creek Company Purchased 5,000 Shares