Multiple Choice
On January 1,2010,Turtle Inc.bought 30% of the outstanding shares of Shell Corporation at a cost of $150,000.The equity method of accounting for this investment is used.During 2010,Shell Corporation reported $40,000 of net income and paid $5,000 in cash dividends.At the end of 2010,the shares had a market value of $160,000.How much investment income will Turtle report from the Shell investment during 2010?
A) $12,000
B) $40,000
C) $5,000
D) $1,500
Correct Answer:
Verified
Correct Answer:
Verified
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