record investment income from Sanderson


Prior Industries acquired an 80 percent interest in Sanderson Company by purchasing 24,000 of its 30,000 outstanding shares of common stock at book value of $105,000 on January 1, 2010. Sanderson reported net income in 2010 of $45,000 and in 2011 of $60,000 earned evenly throughout the respective years. Prior received $12,000 dividends from Sanderson in 2010 and $18,000 in 2011. Prior uses the equity method to record its investment. Prior should record investment income from Sanderson during 2011?

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: record investment income from Sanderson
Reference No:- TGS0703537

Expected delivery within 24 Hours