Knabe Corporation purchased 3,000 shares of Duncan Corporation common stock for $80 per share on January 1,2009,as a long-term investment.Duncan reported net income of $70,000 and $90,000 for 2009 and 2010,respectively,and paid dividends of $25,000 and $30,000 during 2009 and 2010,respectively.Duncan has a total of 10,000 shares outstanding.Compute the following amounts.
a. Amount of investment income recognized by Knabe Corporation during 2009
b. Balance of Investment in Duncan Corporation account at end of 2009
c. Amount of investment income recognized by Knabe Corporation during 2010
d. Balance of Investment in Duncan Corporation account at end of 2010

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The Answer of Knabe Corporation purchased 3,000 shares of Duncan Corporation common stock for $80 per share on January 1,2009,as a long-term investment.Duncan reported net income of $70,000 and $90,000 for 2009 and 2010,respectively,and paid dividends of $25,000 and $30,000 during 2009 and 2010,respectively.Duncan has a total of 10,000 shares outstanding.Compute the following amounts.
a. Amount of investment income recognized by Knabe Corporation during 2009
b. Balance of Investment in Duncan Corporation account at end of 2009
c. Amount of investment income recognized by Knabe Corporation during 2010
d. Balance of Investment in Duncan Corporation account at end of 2010

Knabe Corporation Purchased 3,000 Shares of Duncan Corporation Common Stock