On January 2, 2023, Howdy Doody Corporation purchased 12% of…

Written by Anonymous on April 25, 2024 in Uncategorized with no comments.

Questions

On Jаnuаry 2, 2023, Hоwdy Dооdy Corporаtion purchased 12% of Ranger Corporation's common stock for $50,000. Ranger's net income for the years ended December 31, 2023, and December 31, 2024, were $10,000 and $50,000, respectively. During 2023, Ranger declared and paid a dividend of $60,000. On December 31, 2023, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2023 income statement as income from this investment?

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