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Company P Purchased a 30% Interest in Company S on January

Question 7

Multiple Choice

Company P purchased a 30% interest in Company S on January 1, 20X1, for $100,000. The price was equal to the book value of the equity acquired. The reported income (loss) and dividends paid by the Company S are as follows: Company P purchased a 30% interest in Company S on January 1, 20X1, for $100,000. The price was equal to the book value of the equity acquired. The reported income (loss) and dividends paid by the Company S are as follows: Investment income reported in 20X4 under the sophisticated equity method would be ____. A) $15,000 B) $13,500 C) $4,000 D) $0 Investment income reported in 20X4 under the sophisticated equity method would be ____.


A) $15,000
B) $13,500
C) $4,000
D) $0

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