What was Demo Cos total dividends for the year

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Problem - Equity Method

Gator plc invested £1,000,000 in Demo Co. for 25% of its outstanding shares. Demo Co. pays out 40% of net income in dividends each year.

Please use the information in the following T-account for the investment in Demo to answer the following questions.

Investment in Demo Co.

1,000,000

130,000

52,000

a. How much was Gator plc's share of Demo Co.'s net income for the year?

b. How much was Gator plc's share of Demo Co.'s dividends for the year?

c. What was Demo Co.'s total net income for the year?

d. What was Demo Co.'s total dividends for the year?

Reference no: EM132477396

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