How much income would park corp report

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Problem 1: Park Corporation acquired 30,000 of the 100,000 outstanding common shares of Solo Company on January 1, Year 1, for a cash consideration of $480,000. During Year 1, Solo Company had net income of $130,000 and paid dividends of $55,000. At the end of Year 1, shares of Solo Company were trading for $17 each. If Park Corp. accounts for its investment in Solo Co. at fair value through profit and loss, how much income would Park Corp. report from its investment in Solo Co. for the year ended December 31, Year 1?

1) $16,500
2) $30,000
3) $39,000
4) $46,500

Reference no: EM132730591

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