Asked by jessica portnoy on Jun 18, 2024
Verified
How much should Gilman Company report as investment income from the Burke investment during 2019?
A) $230,000.
B) $218,000.
C) $12,000.
D) $30,000.
Investment Income
Income received from the assets invested in, such as dividends, interest, or rental income.
Common Stock
Shares of ownership in a corporation that grant holders voting rights and a share of the company’s profits through dividends.
Long-Term Investment
Investments a company intends to hold for more than one year, typically including stocks, bonds, or real estate.
- Determine the goodwill associated with acquisitions and the revenue from equity-method investment entities.
Verified Answer
KC
Kaykay Crockett CrockettJun 22, 2024
Final Answer :
A
Explanation :
Gilman Company should report $230,000 as investment income from the Burke investment during 2019. This is because the income from an investment is recognized based on the share of profits of the investee company that is attributable to the investing company, assuming the use of the equity method for accounting.
Learning Objectives
- Determine the goodwill associated with acquisitions and the revenue from equity-method investment entities.