On January 1,2013,Preston Corporation purchased 5,000 shares of Nicholas Corporation common stock for $120 per share.Preston's investment represents 30 percent of the total outstanding shares of Nicholas.During 2010,Nicholas paid total dividends of $200,000.Preston appropriately used the equity method to account for this investment and accordingly reported the investment at a carrying value of $780,000 on December 31,2013.Compute the amount of earnings reported by Nicholas Corporation for 2013.

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The Answer of On January 1,2013,Preston Corporation purchased 5,000 shares of Nicholas Corporation common stock for $120 per share.Preston's investment represents 30 percent of the total outstanding shares of Nicholas.During 2010,Nicholas paid total dividends of $200,000.Preston appropriately used the equity method to account for this investment and accordingly reported the investment at a carrying value of $780,000 on December 31,2013.Compute the amount of earnings reported by Nicholas Corporation for 2013.

On January 1,2013,Preston Corporation Purchased 5,000 Shares of Nicholas Corporation