Multiple Choice
Parent Company purchased 100 percent of Son Inc.on January 1,20X2 for $420,000.Son reported earnings of $82,000 and declared dividends of $4,000 during 20X2.
-Based on the preceding information and assuming Parent carries its investment in Son at cost,what is the balance in Parent's Investment in Son account on December 31,20X2,prior to consolidation?
A) $416,000
B) $420,000
C) $424,000
D) $498,000
Correct Answer:
Verified
Correct Answer:
Verified
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