Multiple Choice
On January 1, 2014, Entertainment Company acquired 15% of the outstanding voting stock of Rocker Company as a long-term investment in available-for-sale securities. During 2014, Rocker Company reported net income of $1,500,000 and dividends declared and paid of $250,000. How much income will be reported during 2014 from the Rocker investment?
A) $225,000.
B) $37,500.
C) $187,500.
D) $250,000.
Correct Answer:
Verified
Correct Answer:
Verified
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