Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 2014, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 2014: $\begin{array}{lr}
\text { net income } & \$ 575,000 \
\text { Dividends declared and paid during December, 2014 } \
\text { Market price per share } & \$ 30,000
\end{array}$ How much should Gilman Company report as investment income from the Burke investment during 2014?

Question

Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 2014, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 2014: $\begin{array}{lr}
 \text { net income } & \$ 575,000 \
\text { Dividends declared and paid during December, 2014 } \
\text { Market price per share } & \$ 30,000
\end{array}$ How much should Gilman Company report as investment income from the Burke investment during 2014?

Quizplus · Accepted Answer

The Answer of Gilman Company purchased 100,000 of the 250,000 shares of common stock of Burke Corporation on January 1, 2014, at $40 per share as a long-term investment. The records of Burke Corporation showed the following on December 31, 2014: $\begin{array}{lr}
 \text { net income } & \$ 575,000 \
\text { Dividends declared and paid during December, 2014 } \
\text { Market price per share } & \$ 30,000
\end{array}$ How much should Gilman Company report as investment income from the Burke investment during 2014?

Gilman Company Purchased 100,000 of the 250,000 Shares of Common