On January 1, 2014, Peach, Inc. purchased 40% of the common stock of Apple Company for $61,000. At the date of acquisition, the following information for Apple Company was available:
In 2014, Apple earned $18,000 of net income and distributed $12,500 of dividends. How much investment income would Peach record in 2014?

Question

On January 1, 2014, Peach, Inc. purchased 40% of the common stock of Apple Company for $61,000. At the date of acquisition, the following information for Apple Company was available: 
 In 2014, Apple earned $18,000 of net income and distributed $12,500 of dividends. How much investment income would Peach record in 2014?

Quizplus · Accepted Answer

The Answer of On January 1, 2014, Peach, Inc. purchased 40% of the common stock of Apple Company for $61,000. At the date of acquisition, the following information for Apple Company was available: 
 In 2014, Apple earned $18,000 of net income and distributed $12,500 of dividends. How much investment income would Peach record in 2014?