What amount should grant include in its income statement

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Question - Grant, Inc. acquired 30% of South Co.'s voting stock for $200,000 on January 2, 2015.

Grant's 30% interest in South gave Grant the ability to exercise significant influence over South's operating and financial policies. During 2015, South earned $80,000 and paid dividends of $50,000. South reported earnings of $100,000 for the six months ended June 30, 2016, and $200,000 for the year ended December 31, 2016. On July 1, 2016, Grant sold half of its stock in South for $150,000 cash. South paid dividends of $60,000 on October 1, 2016.

Before income taxes, what amount should Grant include in its 2015 Income Statement as a result of the investment?

a. $24,000

b. $80,000

c. $50,000

d. $15,000

Reference no: EM132722975

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