Reference no: EM131782815

1) Dividends received are recorded in the income statement for:

A) None of these.

B) Equity method investments.

C) Trading securities.

D) Only two of the choices (except for none of these).

E) Available for sale investments.

2) On January 1, 20X1, Vijay Company purchased 10,000 shares of the stock of Kannan, and did not obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $100,000, and represents a 10% ownership stake. Kannan made $25,000 of net income in 20X1, and paid dividends of $10,000. The price of Kannan's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year. How much should be reported on the balance sheet for this investment as the end of 20X1?

3) On January 1, 20X1, Vijay Company purchased 10,000 shares of the stock of Kannan, and did obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $90,000, and represents a 30% ownership stake. Kannan made $25,000 of net income in 20X1, and paid dividends of $10,000. The price of Kannan's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year. How much should be reported on the balance sheet for this investment as the end of 20X1?

4) On January 1, 20X1, Vijay Company purchased 10,000 shares of the stock of Kannan, and did not obtain significant influence. The investment is intended as a long-term investment. The stock was purchased for $100,000, and represents a 10% ownership stake. Kannan made $25,000 of net income in 20X1, and paid dividends of $10,000. The price of Kannan's stock increased from $10 per share at the beginning of the year, to $12 per share at the end of the year. How much should be reported in the income statement for this investment for 20X1 (exclude other comprehensive income in answering this question)?