On January 1,2019,Entertainment Company Acquired 15% (80,000 Shares)of the Outstanding

question 109

Multiple Choice

On January 1,2019,Entertainment Company acquired 15% (80,000 shares) of the outstanding voting stock of Rocker Company as a long-term investment for $1,784,000.During 2019,Rocker Company reported net income of $1,500,000 and dividends were declared and paid in the amount of $250,000.How much income will be reported during 2019 from the Rocker investment if the year-end price of the shares is $22.30 per share?

• A)$225,000.
• B)$37,500.
• C)$187,500.
• D)$250,000.

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