00:01
So, here question is in ncq form and there are three questions are given.
00:05
So, at first part we need to calculate the equity method income reported by princeton company.
00:12
So, basically we need to calculate the net income attribute to common stock first attribute to common stock.
00:25
So, here what we need to do net income which is given to us 1 lakh dollar multiplied by common stock ownership percentage which is 80%.
00:36
So, now 1 lakh multiplied by 80%.
00:40
So, we got $80 ,000.
00:44
Now next we need to calculate net income attribute to preferred stock.
00:55
So, here preferred stock dividend rate which is given to 10 % here multiplied by preferred stock investment, which is $60 ,000.
01:06
So, it will become $6 ,000.
01:08
Finally, we need to total equity.
01:12
We need to calculate total equity method income equity method income reported by princeton company.
01:31
So, we can add both of this net income attribute from common stock which is $80 ,000 plus net income attribute to preferred stock which is $6 ,000.
01:45
So, it will become $86 ,000.
01:49
So, from the given option, none of the option is provided above.
01:53
So, no option provided, but this is our correct option.
02:01
So, now let's move towards the second mcq and second question...