Reporting net income for the amount

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Reference no: EM13132060

Penny Corporation paid $200,000 for a 25% interest in Cindy Corporation's common stock on January 1, 2002, but was not able to exercise significant influence over Cindy. During 2003, Penny reported income of $120,000, excluding its income from Cindy, and paid dividends of $50,000. Cindy reported net income of $40,000 during 2003 and paid dividends of $20,000. Penny should report net income for 2003 in the amount of:

A-$115,000

B-$120,000

C-$125,000

D-$130,000

Reference no: EM13132060

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