?

Financial Accounting

Free Version

Upgrade subject to access all content

Easy

Available-for-Sale with Dividend & Net Income

FINACT-BVEONY

FurnitureWorld Inc. had a \$50,000 equity investment on January 1, 2015, which was categorized as available-for-sale. This investment allowed FurnitureWorld to hold 1% of voting stock of SofaWholesaler.

FurnitureWorld received a \$2,500 cash dividend during 2015 and SofaWholesaler had a net income of \$250,000 for 2015.

What was the net impact of this investment on the income statement of FurnitureWorld for 2015 (in \$)?