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1 answer:
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Answer:
a. $22,000
Explanation:
Provided information we have,
Investment details in Dubro Corp.
20% in preferred stock
40% in Common stock
Provided net income = $60,000 and dividend to preference stock = $10,000
Therefore, net income after dividend = $60,000 - $10,000 = $50,000
Dividend on preference shares = $10,000 20% = $2,000
Share in net income = $50,000 40% = $20,000
Total part of income to be added in income statement = Dividend on preference capital + share of net income = $2,000 + $20,000 = $22,000
Therefore, correct option is
a. $22,000