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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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