Use the Following Information to Solve the Following Questions

question 51

Multiple Choice

Use the following information to solve the following questions:
During calendar 2020, Davel Corp. reported net income of $ 45,000 and paid total cash dividends of $ 15,000. Ryan Inc. owns 2,250 of the 7,500 outstanding shares of Davel and exercises significant influence.
-How much income from its investment in Davel should Ryan report in 2020?

• A) $ 45,000
• B) $ 15,000
• C) $ 13,500
• D) $ 22,500

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Definitions:

Fugitive Slave Law

Laws passed by the United States Congress in 1793 and 1850 that provided for the return of slaves who escaped from one state into another state or territory.

Runaway Slaves

Enslaved individuals who fled from their owners in search of freedom or less oppressive conditions, a common phenomenon in the history of slavery in the Americas.

Underground Railroad

A network of secret routes and safe houses established in the United States during the early to mid-19th century, used by African American slaves to escape into free states and Canada.

1848 Election

A U.S. presidential election where Whig party candidate Zachary Taylor defeated Democratic candidate Lewis Cass, amidst the backdrop of discussions about slavery's extension into new territories.