Investment-Related Exclusions (LO. 6) Rona receives the following items during the current year: ...
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Accounting
Investment-Related Exclusions (LO. 6)
Rona receives the following items during the current year:
Interest on savings account
$600
Dividends on Microsoft stock
400
Interest on Guam development bonds
1,700
Dividend on life insurance policy
400
(The company is a mutual life insurance company, and the dividend is a return of part of the premium she paid on the policy.)
In addition, Rona owns 1,600 shares of Cochran Corporation common stock. Cochran has a dividend reinvestment plan through which stockholders can receive a stock dividend equal to 4% of their holdings in lieu of a cash dividend of equal value. Rona takes the 64 shares of stock, which are worth $6 per share.
Rona has a gross income of $ for the current year.
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