Answer and Explanation:
According to the scenario, computation of the given data are as follows:-
a) Reported amount in balance sheet
Particular Amount ($)
Investment in company $2,000,000
Add - Net income($3,00,000 × 30 ÷ 100) $90,000
Less - Dividend paid($90,000 × 30 ÷ 100) (-$27,000)
Total Reported Amount in Balance Sheet $2,063,000
b) Amount of income from investment is $90,000
c) Choose option 1 is not reflected on either its income statement or balance sheet.
