On January 1, 2014, TXU Europe Corporation Purchased 40% of the Outstanding

Multiple Choice

On January 1, 2014, TXU Europe Corporation purchased 40% of the outstanding stock of Alberta Power Pool Corporation for $800,000. Net income reported by Alberta Power Pool Corporation for 2014 and 2015 was, respectively, $100,000 and $125,000. Dividends paid by Alberta Power Pool Corporation during 2014 and 2015 were, respectively, $60,000 and $75,000. The long-term investment will appear on TXU Europe Corporation's December 31, 2014, balance sheet at:

A) $776,000
B) $840,000
C) $800,000
D) $816,000