Calculate the total increase to grant incs 2012 net income


Question - Grant, Inc. acquired 30% of South Company's common stock for $350,000 on January 1, 2011. During 2011, South Company reported a net income of $120,000 and paid dividends totaling $30,000. For 2012, South Company earned a $160,000 net income and paid dividends totaling $50,000. On December 31, 2012, Grant, Inc. sold one-half of its investment in South Company for $230,000 cash.

Calculate the total increase to Grant, Inc.'s 2012 net income resulting from the investment in South Company's stock. Do not use decimals in your answer.

Solution Preview :

Prepared by a verified Expert
Accounting Basics: Calculate the total increase to grant incs 2012 net income
Reference No:- TGS02803030

Now Priced at $25 (50% Discount)

Recommended (98%)

Rated (4.3/5)