Clocktower Corporation reported net income for the current year of $370,000 and paid cash dividends of $50,000. Slide Company holds 40 percent of the outstanding voting stock of Clocktower. However, another corporation holds the other 60 percent ownership and does not take Slide's wants and wishes into consideration when making financing and operating decisions for Clocktower. What investment income should Slide recognize for the current year?

Question

Maximillian

Business

6 December, 17:40

Clocktower Corporation reported net income for the current year of $370,000 and paid cash dividends of $50,000. Slide Company holds 40 percent of the outstanding voting stock of Clocktower. However, another corporation holds the other 60 percent ownership and does not take Slide's wants and wishes into consideration when making financing and operating decisions for Clocktower. What investment income should Slide recognize for the current year?

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Peters · Answer 1

20,000

Explanation:

To find the net investment income per share of a company, divide the total investment income by the shares outstanding. This amount is what is available to shareholders as dividends. A publicly-traded company must list its net investment income on its balance sheet.