Financial Accounting

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Available-for-Sale with Dividend & Net Income


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 \$)?