Answer:
155,000
Explanation:
Anchor Co. owns 40% of Main Co.'s common stock outstanding and
75% of Main's noncumulative preferred stock outstanding.
Anchor exercises significant influence over Main's operations.
During the current period, Main declared dividends of
$200,000 on its common stock and
$100,000 on its noncumulative preferred stock.
The amount of dividend income that Anchor should report on its Income Statement for the period related to its investment in Main is:
Ordinary dividends 0.40 x 200,000 = 80,000
Preference dividends 0.75 x 100,000 = 75,000
Total dividends = 155,000
