_____ Paxel Owns 80% of Saxel's Outstanding Common Stock

Multiple Choice

_____ Paxel owns 80% of Saxel's outstanding common stock. For 2006, Saxel reported $60,000 of net income and declared dividends of $10,000. What is the carrying value of Paxel's investment using the equity method at 12/31/06 if the investment's carrying value on 1/1/06 was $200,000?

A) $200,000
B) $208,000
C) $240,000
D) $248,000
E) $256,000