Ashley will recognize what amount of 2010 income


Ashley Company purchased 2,000 of the 10,000 outstanding shares of Judd, Inc.'s common stock for $60,000 on January 1, 2010. During 2010, Judd declared a dividend of $5 per share and reported net income of $75,000. At the end of 2010 the market value of a share of Judd, Inc. stock has increased to $32 per share.

If Ashley Company accounts for the investment as a minority, passive and classifies the investment as an available-for-sale investment, Ashley will recognize what amount of 2010 income from the investment?

 

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Basic Statistics: Ashley will recognize what amount of 2010 income
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