Exhibit 13-2 On January 1, 2017, the Clutz Company purchased 30% of the 1,000,000 shares of Nancy's common stock for $15,000,000 when 30% of Nancy's net assets totaled $12,000,000. The excess of purchase price over the underlying assets was attributable to undervalued depreciable plant assets with a remaining useful life of ten years. Nancy reported net income of $8,000,000 and paid cash
dividends of $2,000,000 during 2017. ? Refer to Exhibit 13-2. What should the income reported by Clutz during 2017 from its investment in the Nancy Company be?
A) $ 600,000
B) $2,100,000
C) $2,400,000
D) $2,900,000
B
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Any standard that is eventually formally incorporated into the Internet or TCP/IP starts as a Request for Comment
Indicate whether the statement is true or false