Jambon Company Owns 10% Interest in the Stock of Fanth

question 12

Multiple Choice

Jambon Company owns 10% interest in the stock of Fanth Corporation. During the year, Fanth pays $8,000 in dividends to Jambon, and reports $200,000 in net income. Jambon Company's investment in Fanth will increase Jambon net income by

• A) $20,000.
• B) $2,000.
• C) $8,000.
• D) $12,000.