Net income and declared dividends

Assignment Help Accounting Basics

Reference no: EM13146422

Paxel owns 80% of Saxel's outstanding common stock. For 2009, Saxel reported $60,000 of net income and declared dividends of $10,000. What amount appears in Paxel's 2009 income statement if Paxel accounts for its investment using the equity method?

a. $-0-

b. $8,000

c. $40,000

d. $48,000

e. $56,000

Reference no: EM13146422

Questions Cloud

Why highest quantity of lobsters demanded : The highest quantity of lobsters demanded and what is the marginal net utility (consumer surplus) when the market price is $ 4.00 per lbs. why?

What is the frequency of ultraviolet light : What is the frequency of ultraviolet light with wavelength 2.51 × 10-8 m? (c = 3.00 × 108 m/s)

Premium should it charge if company wishes expected profit : With probabilities 0.8, 0.1, 0.08 and 0.02 respectively. A particular company offers a $500 deductible policy. If the company wishes its expected profit to be $100, what premium should it charge?

Explain a hydrated form of copper sulfate : A hydrated form of copper sulfate (CuSO4·x H2O) is heated to drive off all the water. If we start with 9.47 g of hydrated salt and have 5.29 g of anhydrous CuSO4

Net income and declared dividends : Paxel owns 80% of Saxel's outstanding common stock. For 2009, Saxel reported $60,000 of net income and declared dividends of $10,000. What amount appears in Paxel's 2009 income statement if Paxel accounts for its investment using the equity method..

What is the measured gdp : expenditure on goods and services produced by the private sector. If we imported $3 billion more than we exported, what is the measured GDP?

Problem related to straight-line method of depreciation : ABC Corp. purchased an asset on January 1, 2008, for $10,400. The asset was expected to have a ten-year life and a $1,000 salvage value. ABC Corp. uses the straight-line method of depreciation. On January 1, 2010, ABC Corp. determines that the ass..

At what temperature will a gas be : At what temperature will a gas be at if you allow it to expand from an original 456 mL at 65 celcius to 3.4 L?

Journal entry to record cost of goods sold : High Ridge Merchandising Co. sold inventory that had a cost of $10,000. Assuming High Ridge uses the perpetual inventory method, the effect of the journal entry to record Cost of Goods Sold would:

User Account

All Pages