Multiple Choice
On July 1,20X4,Denver Corp.purchased 3,000 shares of Eagle Co.'s 10,000 outstanding shares of common stock for $20 per share.On December 15,20X4,Eagle paid $40,000 in dividends to its common stockholders.Eagle's net income for the year ended December 31,20X4,was $120,000,earned evenly throughout the year.In its 20X4 income statement,what amount of income from this investment should Denver report?
A) $12,000
B) $36,000
C) $18,000
D) $6,000
Correct Answer:
Verified
Correct Answer:
Verified
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