On January 2, 2019, P. T. Barnum, Inc. purchased a 25% interest in (which gave...
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On January 2, 2019, P. T. Barnum, Inc. purchased a 25% interest in (which gave it significant influence over) the Gustave Whitehead Aircraft Corp. (Whitehead) for $500,000 cash. During 2019, Whitehead's net income was $1,000,000 and it paid total dividends of $300,000. On December 31, 2019, Barnums shares in Whitehead Corp. had a fair market value of $510,000. How much income should Barnum recognize from Whitehead on Barnums 2019 Income Statement:
$250,000
$75.000
$175.000
$10,000
$325,000
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