On January 1, 2020, Oak Corporation paid $900,000 for 87,500 shares of Beech Company's common...
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Accounting
On January 1, 2020, Oak Corporation paid $900,000 for 87,500 shares of Beech Company's common stock, which represents 35% of Beechs outstanding common stock. Beech reported income of $300,000 and paid a cash dividend of $100,000 during 2020.
Oak should report income from the investment in Beech Company for 2020 of
a. 300,000
b. 105,000
c. 70,000
d.140,000
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