Moss Corp. owns 20% of Dubro Corp.’s preferred stock and 80% of its common stock. Dubro’s stock outstanding at December 31, 2006, is as follows:
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|
10% cumulative preferred stock |
$100,000 |
|
Common stock |
700,000 |
Dubro reported net income of $60,000 for the year ended December 31, 2006. What amount should Moss record as equity in earnings of Dubro for the year ended December 31, 2006?
- $42,000
- $48,000
- $48,400
- $50,000