Multiple Choice
On January 1,20X7,Poke Corporation acquired 25 percent of the outstanding shares of Shove Corporation for $100,000 cash.Shove Company reported net income of $75,000 and paid dividends of $30,000 for both 20X7 and 20X8.The fair value of shares held by Poke was $110,000 and $105,000 on December 31,20X7 and 20X8 respectively.
-Based on the preceding information,what amount will be reported by Poke as balance in investment in Shove on December 31,20X8,if it used the equity method of accounting?
A) $108,250
B) $118,750
C) $100,000
D) $122,500
Correct Answer:
Verified
Correct Answer:
Verified
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