(Answered) Question - on january 4 2002 wynn inc bought 15 of parr

Accounting

Question - On January 4, 2002 Wynn Inc. bought 15% of Parr Corporation's common stock for $60,000. Wynn appropriately accounts for this investment by the cost method. The following data concerning Parr are available for the years ended Dec 31, 2002 and 2003.

2002: Net Income $30,000

Dividend Paid None

2003: Net Income $90,000

Dividend Paid $80,000

In its income statement for the year ended December 31, 2003, how much should wynn report as income from this investment.

a. $4,500

b. $9,000

c. $12,000

d. $13,500

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