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Gator Co. invested $1,340,000 in Demo Co. for 25% of its outstanding stock

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Gator Co. invested $1,340,000 in Demo Co. for 25% of its outstanding stock. Demo Co. pays out 40% of net income in dividends each year.;Use the information in the following T-account for the investment in Demo to answer the following questions.;Investment in Demo Co.;1,340,000;100,000;40,000;(a) How much was Gator Co.'s share of Demo Co.'s net income for the year?;$;(b) How much was Gator Co.'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?;$

 

Paper#23553 | Written in 18-Jul-2015

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