Yaro Company Owns 30% of the Common Stock of Dew

question 99

Multiple Choice

Yaro Company owns 30% of the common stock of Dew Co.and uses the equity method to account for the investment.During 2008,Dew reported income of $250,000 and paid dividends of $80,000.There is no amortization associated with the investment.During 2008,how much income should Yaro recognize related to this investment?

• A)$24,000.
• B)$75,000.
• C)$99,000.
• D)$51,000.
• E)$80,000.

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