Solved

REFERENCE: Ref.01_03 On January 1,2007,Deuce Inc.acquired 15% of Wiz Co.'s Outstanding Common

question 85

Multiple Choice

REFERENCE: Ref.01_03
On January 1,2007,Deuce Inc.acquired 15% of Wiz Co.'s outstanding common stock for $62,400 and categorized the investment as an available-for-sale security.Wiz earned net income of $96,000 in 2007 and paid dividends of $36,000.On January 1,2008,Deuce bought an additional 10% of Wiz for $54,000.This second purchase gave Deuce the ability to significantly influence the decision making of Wiz.During 2008,Wiz earned $120,000 and paid $48,000 in dividends.As of December 31,2008,Wiz reported a net book value of $468,000.For both purchases,Deuce concluded that Wiz Co.'s book values approximated fair values and attributed any excess cost to goodwill.
-What amount of equity income should Deuce have reported for 2008?

Definitions:

Gastrointestinal Problems

Health issues related to the stomach and intestines, which can include symptoms like cramps, bloating, gas, diarrhea, and constipation.

Chronic Sore Throat

A persistently painful, dry, or scratchy feeling in the throat lasting for a long period, often caused by ongoing inflammation or infection.

Disruptive Mood Dysregulation Disorder

A psychiatric disorder characterized by severe and recurrent temper outbursts in children and adolescents that are out of proportion to the situation.

Recurrent Episodes

The reoccurrence of events or episodes, such as in mental illness or a series, after a period of remission or absence.