Ashley Company Ashley Company Purchased 2,000 of the 10,000 Outstanding Shares of Shares

question 16

Multiple Choice

Ashley Company
Ashley Company purchased 2,000 of the 10,000 outstanding shares of Judd, Inc.'s common stock for $60,000 on January 1, 2010.During 2010, Judd declared a dividend of $5 per share and reported net income of $75,000.At the end of 2010 the market value of a share of Judd, Inc.stock has increased to $32 per share.
-If Ashley Company accounts for the investment as a minority,active investment and uses the equity method to account for the investment,then Ashley will recognize what amount of 2010 income from the investment?

• A) $4,000
• B) $10,000
• C) $25,000
• D) $15,000

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Definitions:

Employers Monitoring

The practice by employers to oversee and track the actions and communications of employees during work hours on company systems and properties to ensure productivity and compliance with policies.

Activities Outside Work

Tasks or engagements pursued by an individual outside of their professional employment hours.

Genetic Information Nondiscrimination Act

A U.S. federal law enacted in 2008 to prohibit discrimination in health insurance and employment based on an individual's genetic information.

Employer

An individual or organization that employs people, offering wages or salary in exchange for labor or services.