Reference no: EM133096127

Questions -

Q1. Sunland, Inc. acquired 20% of Oriole Corporation's voting stock on January 1, 2021 for $1060000. During 2021, Oriole earned $418000 and paid dividends of $262000. Sunland's 20% interest in Oriole gives Sunland the ability to exercise significant influence over Oriole's operating and financial policies. During 2022, Oriole earned $518000 and paid cash dividends of $162000 on April 1 and $162000 on October 1. On July 1, 2022, Sunland sold half of its stock in Oriole for $678000 cash.

Before income taxes, what amount should Sunland include in its 2021 income statement as a result of the investment?

a. $83600.

b. $52400.

c. $262000.

d. $418000.

Q2. The first step in the process for revenue recognition is to

identify the contract with customers.

identify the separate performance obligations in the contract.

determine the transaction price.

allocate transaction price to the separate performance obligations