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Ziegler Corporation purchased 25,000 shares of common stock of the Sherman Corporation for $40 per share...

Ziegler Corporation purchased 25,000 shares of common stock of the Sherman Corporation for $40 per share on January 2, 2020. Sherman Corporation had 100,000 shares of common stock outstanding during 2021, paid cash dividends of $150,000 during 2018, and reported net income of $500,000 for 2021. Ziegler Corporation should report revenue from investment for 2018 in the amount of?

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Answer #1

Revenue from investment = $500,000*25,000/100,000

Revenue from investment = $125,000

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