Gaw company owns 15 of the common stock of teal corporation, Ask an Expert

Accounting

Gaw Company owns 15% of the common stock of Teal Corporation and used the fair-value method to account for this investment. Teal reported net income of $110,000 for 2002 and paid dividends of $60,000 on October 1, 2002. How much income should Gaw recognize on this investment in 2002?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9102433

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