Osaka Co Acquired a 10% Interest in Chen Corp

question 154

Multiple Choice

Osaka Co. acquired a 10% interest in Chen Corp. on December 31, 2013 for HK$3,780,000. During 2014, Chen had net income of HK$2,400,000 and paid cash dividends of HK$600,000. Osaka's 2014 income statement will report

• A) dividend income of HK$60,000.
• B) investment income of HK$180,000.
• C) investment income of HK$240,000.
• D) cannot be determined from the information given.

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Definitions:

Ages

The lengths of time that individuals or entities have existed, typically measured in years.

Volunteers

Individuals who offer services or undertake tasks without expecting compensation or material gain, usually to benefit others or a community.

Sample Variance

A statistic that measures the dispersion of a sample set of data points around their sample mean.

Sample Standard Deviation

Sample Standard Deviation is a measure that quantifies the amount of variation or dispersion of a set of sample data values around the sample mean.