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Parent co invested 1053000 in sub co for 25 of its

Problem - Parent Co. invested $1,053,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 45% of net income in dividends each year.

Use the information in the following T-account for the investment in Sub to answer the following questions.

Investment in Sub Co.

1,053,000

137,100

61,695

(a) How much was Parent Co.'s share of Sub Co.'s net income for the year?

(b) How much was Parent Co.'s share of Sub Co.'s dividends for the year?

(d) What was Sub Co.'s total dividends for the year?

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Accounting Basics: Parent co invested 1053000 in sub co for 25 of its

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Accounting Basics: Parent co invested 1053000 in sub co for 25 of its

Reference No:- TGS02416709

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