Business, 14.11.2019 19:31, lexybellx3

Prime industries acquired a 70 percent interest in suburbia company by purchasing 14,000 of its 20,000 outstanding shares of common stock at book value of $210,000 on january 1, 2016. suburbia reported net income in 2016 of $90,000 and in 2017 of $120,000 earned evenly throughout the respective years. prime received $24,000 dividends from suburbia in 2016 and $36,000 in 2017. prime uses the equity method to record its investment. prime should record investment income from suburbia during 2017 of:
a. $210,000
b. $285,000
c. $297,000
d. $315,000

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Prime industries acquired a 70 percent interest in suburbia company by purchasing 14,000 of its 20,0...