On January 1,of the current year,Rod Corporation purchased 40% of the outstanding stock of Alamo Corporation for $480,000.Net income reported by Alamo for the year was $210,000.Dividends declared and paid by Alamo during the year were $40,000.The amount of investment revenue that Rod should recognize for the current year is:
A)$16,000.
B)$68,000.
C)$84,000.
D)$100,000.

Question

Quizplus · Accepted Answer

$210,000 × 40% = $84,000

On January 1,of the Current Year,Rod Corporation Purchased 40% of the Outstanding