Multiple Choice
On January 1,2010,Palmer,Inc.bought 40% of the outstanding shares of Arnold Corporation at a cost of $137,000.The equity method of accounting for this investment is used.During 2010,Arnold Corporation reported $30,000 of net income and paid $10,000 in cash dividends.At the end of 2010,the shares had a market value of $150,000.At what amount should the Arnold investment be reported at on the December 31,2010 balance sheet?
A) $150,000
B) $158,000
C) $145,000
D) $148,000
Correct Answer:
Verified
Correct Answer:
Verified
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