Problem 5: Investment in Equity Securities On January 1, the…

Problem 5: Investment in Equity Securities On January 1, the company acquires 30% of the stock of Sun Times, Inc. at a cost of $140,000.  On December 31, Sun Times reports a net income of $70,000, and declares and pays a dividend of $10,000.  Assume that the investment is made for cash. Use the above information to answer questions 12 thru 14.