Multiple Choice
On January 1, 20X1, Company P purchased a 30% interest in the Company S for $345,000.At that time, Company S had stockholders' equity of $1,000,000.Any excess cost over book value was attributed to a patent with a 15-year life.During 20X1, Company S earned $60,000 and paid dividends of $15,000.What is the balance in the investment account on December 31, 20X1, using the sophisticated equity method?
A) $363,000
B) $360,000
C) $355,500
D) $349,500
Correct Answer:
Verified
Correct Answer:
Verified
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