On January 1, 20X8, Pullman Company acquired 30 percent of Skate
Company's common stock, at underlying book value of $100,000. Skate
has 100,000 shares of $2 par value, 5 percent cumulative preferred
stock outstanding. No dividends are in arrears. Skate reported net
income of $150,000 for 20X8 and paid total dividends of $72,000.
Pullman uses the equity method to account for this investment.
6) Based on the preceding information, what amount would Pullman Company receive as dividends from Skate for the year?
A) $62,000
B) $21,600
C) $18,600
D) $54,000
7) Based on the preceding information, what amount of investment income will Pullman Company report from its investment in Skate for the year?
A) $45,000
B) $42,000
C) $62,000
D) $35,000
8) Based on the preceding information, what amount would be reported by Pullman Company as the balance in its investment account on December 31, 20X8?
A) $100,000
B) $123,400
C) $120,400
D) $142,000
the answers i bolded are the correct answers but please explain to me how to get the answers please show calulations for all of them
6) Based on the preceding information, what amount would Pullman Company receive as dividends from Skate for the year?
A) $62,000
B) $21,600
C) $18,600
D) $54,000
7) Based on the preceding information, what amount of investment income will Pullman Company report from its investment in Skate for the year?
A) $45,000
B) $42,000
C) $62,000
D) $35,000
8) Based on the preceding information, what amount would be reported by Pullman Company as the balance in its investment account on December 31, 20X8?
A) $100,000
B) $123,400
C) $120,400
D) $142,000
the answers i bolded are the correct answers but please explain to me how to get the answers please show calulations for all of them
