Savannah Corporation purchased 35,000 shares of common stock of the Boulet Corporation for $50 per share on January 2, 2017. Dur

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Savannah Corporation purchased 35,000 shares of common stock of the Boulet Corporation for $50 per share on January 2, 2017. Dur

ing 2017, Boulet Corporation had 140,000 shares of common stock outstanding, paid cash dividends of $120,000, and reported net income of $320,000. Savannah Corporation should report revenue from investment for 2017 in the amount of $30,000. $50,000. $80,000. $0.

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1 answer:

Elena L [17] · Answer 1 · 2023-04-16T04:42:30+03:00

Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.

<h3>Amount to be reported as revenue</h3>

First step

Percentage ownership=35,000/140,000 shares ×100

Percentage ownership=25%.

Second step

Using equity method

Revenue from investment=25%× $320,000

Revenue from investment=$80,000

Therefore Savannah Corporation should report revenue from investment for 2017 in the amount of $80,000.

Learn more about revenue here:brainly.com/question/24280609

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