Gaw Company owns 15% of the common stock of Teal Corporation and used the fair-value method to account for this investment.

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October 18, 2020
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Gaw Company owns 15% of the common stock of Teal Corporation and used the fair-value method to account for this investment. Teal reported net income of $110,000 for 2002 and paid dividends of $60,000 on October 1, 2002. How much income should Gaw recognize on this investment in 2002?

Gaw Company owns 15% of the common stock of Teal Corporation and used the fair-value method to account for this investment.

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