Question - The Zero Corp. acquired 30% of the common stock of Bar Corporation for $460,000 cash on January 1, 2014. At time of acquisition, Bar's total net asset value (book value) was $1,100,000.
Assume the following information for Bar:
|
Total Annual Earnings
|
Total Annual Dividends
|
Year End Market Value
|
|
2014
|
$100,000
|
$40,000
|
$1,200,000
|
|
2015
|
$ 90,000
|
$40,000
|
$1,000,000
|
Given Zero's ownership of Bar, what will be the dollar amount effect on Zero's:
- 2014 net income: ____________________
- 2014 dividend income: ________________
What is on the balance sheet for the Investment in Bar at year end 2015?