Reference no: EM132600836

Question - Banks A and B agreed to combine their corporate, investment, banking, asset management and service activities by establishing a separate vehicle (Bank X). Both parties expect the arrangement to benefit them in different ways.

The Assets and Liabilities held in Bank X are the assets and liabilities of Bank X and not the assets and liabilities of the parties. Bank A and B each invested $5,000,000 to have a 40% ownership interest in Bank X, with the remaining 20% being listed and widely held. The stockbroker's agreement between Bank A and Bank B establishes joint control over the activities of Bank X.

The transactions for Bank X for the year 2020 and 2021 are as follows:

Revenues of $10,000,000 for 2020 and $12,000,000 for 2021

Cost and Expenses of $6,000,000 for 2020 and $7,000,000 for 2021

Dividends declared and paid of $0 for 2020 and $4,000,000 for 2021

What is the dividend income from Bank X reported under Bank A's primary financial statements for the year ended December 31, 2021?