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What amount should ashton recognize as part of net income

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Question - At the beginning of 2018, Ashton Company purchased 1 million of the 20 million outstanding shares of Jeffrey Corporation's common stock for $40 million. During 2018, Jeffrey declared and paid dividends of $3 per share to all common shareholders and also reported net income of $80 million for the year. The market price of Jeffrey stock ended the year of 2108 at $39 per share. Ashton classified the holding of Jeffrey stock as a minority, passive investment and as trading securities. What amount should Ashton recognize as part of net income in 2018 for this investment?

Reference no: EM133155484

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