1 Normal 1 No Spac.. Heading 1 Heading 2 Font On January 1, 20x8, William...
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1 Normal 1 No Spac.. Heading 1 Heading 2 Font On January 1, 20x8, William Company acquired 30 percent of eGate Company's common stock, at underlying book value of $100,000. eGate has 100,000 shares of $2 par value, 5 percent cumulative preferred stock outstandi of S150,000 for 20X8 and paid total dividends of S72,000. William uses the equity method to account for this investment. No dividends are in arrears. eGate reported net income 6. Based on the preceding information, what amount would William Company receive as dividends from eGate for the year? A. $62,000 B. S21,600 C. $18,600 D. $54,000 Answer: C 7. Based on the preceding information, what amount of investment income will William Company report from its investment in eGate for the year? A. $45,000 B. $42,000 C. $62,000 D. $35,000 Answer: B 8. Based on the preceding information, what amount would be reported by William Company as the balance in its investment account on December 31, 20X8? GLISH (UNITED STATES)
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