On December 31, 2010, Rory Corp

question 35

Essay

On December 31, 2010, Rory Corp. acquired an 18% interest in Batson Corp. for $100,000 and appropriately applied the cost method. During 2011, Batson had net income of $200,000 and paid cash dividends of $50,000. On the last day of 2011, Rory sold one-half of its investment in Batson Corp. for $180,000. How much should Rory report on its income statement for the year ending December 31, 2011? Show your work.

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Definitions:

Superordinate Goal

A shared goal that requires the cooperation of two or more groups or individuals, fostering collaboration and reducing conflict.

Transformational Leaders

Leaders who inspire and motivate followers to transcend their self-interests for the sake of the organization and can instigate significant changes.

Executive Symbols

Symbols or objects associated with positions of authority, often used to represent power, prestige, and the responsibilities of executives.

Leadership Motivation

The inner drive or desire influencing individuals to pursue and achieve leadership roles and responsibilities to influence others and achieve goals.