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Gunnar Ltd

Question 32

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Gunnar Ltd.owns 100% of the common shares of Ivy Ltd.During the year,Gunnar reported net income of $108,000 including its income from its investment in Ivy accounted for under the cost method.Ivy reported net income of $20,000 and paid dividends of $8,000 during the year.What net income will be reported by Gunnar on its separate-entity financial statements under the equity method and on its consolidated financial statements?


A) Gunnar Ltd.owns 100% of the common shares of Ivy Ltd.During the year,Gunnar reported net income of $108,000 including its income from its investment in Ivy accounted for under the cost method.Ivy reported net income of $20,000 and paid dividends of $8,000 during the year.What net income will be reported by Gunnar on its separate-entity financial statements under the equity method and on its consolidated financial statements? A) B) C) D)
B) Gunnar Ltd.owns 100% of the common shares of Ivy Ltd.During the year,Gunnar reported net income of $108,000 including its income from its investment in Ivy accounted for under the cost method.Ivy reported net income of $20,000 and paid dividends of $8,000 during the year.What net income will be reported by Gunnar on its separate-entity financial statements under the equity method and on its consolidated financial statements? A) B) C) D)
C) Gunnar Ltd.owns 100% of the common shares of Ivy Ltd.During the year,Gunnar reported net income of $108,000 including its income from its investment in Ivy accounted for under the cost method.Ivy reported net income of $20,000 and paid dividends of $8,000 during the year.What net income will be reported by Gunnar on its separate-entity financial statements under the equity method and on its consolidated financial statements? A) B) C) D)
D) Gunnar Ltd.owns 100% of the common shares of Ivy Ltd.During the year,Gunnar reported net income of $108,000 including its income from its investment in Ivy accounted for under the cost method.Ivy reported net income of $20,000 and paid dividends of $8,000 during the year.What net income will be reported by Gunnar on its separate-entity financial statements under the equity method and on its consolidated financial statements? A) B) C) D)

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