How to recognize an investment


Jones Corporation owns 10% of the common stock of Sayles Company as a result of a stock purchase on January 1, 2010 and used the fair-value method to account for this investment.Sayles reported net income of $250,000 for 2011 and paid dividends of $50,000 on July 1, 2011. During 2011, how much income should Jones Corp. recognize on this investment?

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Accounting Basics: How to recognize an investment
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