Olivia Co.owns 4,000 of the 10,000 outstanding shares of Hobbitt Corp.common stock and exercises significant influence over the company.During 2011,Hobbitt earns $80,000 and pays cash dividends of $30,000.For the year ended December 31,2011,Olivia should report income related to the investment equal to:
A) $0
B) $12,000
C) $32,000
D) $20,000
Correct Answer:
Verified
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