Multiple Choice
_____ Paxel owns 80% of Saxel's outstanding common stock. For 2006, Saxel reported $60,000 of net income and declared dividends of $10,000. What amount appears in Paxel's 2006 income statement if Paxel accounts for its investment using the equity method?
A) $ -0-
B) $8,000
C) $40,000
D) $48,000
E) $56,000
Correct Answer:
Verified
Correct Answer:
Verified
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