Wood Co. owns 2,000 shares of Arlo, Inc.’s 20,000 shares of $100 par, 6% cumulative, nonparticipating preferred stock and 1,000 shares (2%) of Arlo’s common stock. During Year 2, Arlo declared and paid dividends of $240,000 on preferred stock. No dividends had been declared or paid during Year 1. In addition, Wood received a 5% common stock dividend from Arlo when the quoted market price of Arlo’s common stock was $10 per share. What amount should Wood report as dividend income in its Year 2 income statement?$24,000
$24,500$24,550$25,000

Dividend income of $24,000

Explanation:

Wood Co. owns 2000 out of the 20000 cumulative,non-participating preferred shares,which implies that out of all preferred dividends declared and paid by Arlo inc, Wood Co, get 2000/20000 of the dividends

Wood Co's dividends =2,000/20,000*$240,000

                                    =$24,000

The stock dividend of 5% of common stock is not to be recognized as dividend income but an increase in investment in Arlo Inc,a capital gains yield not dividend yield

Capital gains yield is the return from investment in form capital appreciation while dividend is a revenue return from investment

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!

answer; ///blank(1); rate-buster; blank(2) systematic soldiering;