Back to Archive Keyword Select Category All categories AccountingGeneral Question Status AllProcessingHoldSolved Ask Question 0 admin Aug 24, 2022 07:44 PM 1 Answers Accounting Member Since Aug 2022 Subscribed Subscribe Not subscribe Cancel subscribe Flag(0) Gaw Company owns 15% of the common stock of Trace Corporation and used the fair-value method to account for this investment. Trace reported net income of $110,000 for 2018 and paid dividends of $60,000 on October 1, 2018. How much income should Gaw recognize on this investment in 2018?   A) $16,500. B) $9,000. C) $25,500. D) $7,500. E) $50,000. Answer: B Learning Objective: 01-01 Topic: Investments―Fair-value method Difficulty: 1 Easy Blooms: Apply AACSB: Knowledge Application AICPA: BB Critical Thinking AICPA: FN Measurement Feedback: $60,000 × .15 = $9,000 0 Subscribers Submit Answer Make your answer private. Submit Answer 1 Answers Best Answer 0 Anonymous Edit Aug 24, 2022 Flag(0) B Sign in to Reply…    read more