On January 1,20X6,Plus Corporation Acquired 90 Percent of Side Corporation

Multiple Choice

On January 1,20X6,Plus Corporation acquired 90 percent of Side Corporation for $180,000 cash.Side reported net income of $30,000 and dividends of $10,000 for 20X6,20X7,and 20X8.On January 1,20X6,Side reported common stock outstanding of $100,000 and retained earnings of $60,000,and the fair value of the noncontrolling interest was $20,000.It held land with a book value of $30,000 and a market value of $35,000 and equipment with a book value of $50,000 and a market value of $60,000 at the date of combination.The remainder of the differential at acquisition was attributable to an increase in the value of patents,which had a remaining useful life of five years.All depreciable assets held by Side at the date of acquisition had a remaining economic life of five years.Plus uses the equity method in accounting for its investment in Side.
-Based on the preceding information,what balance would Plus report as its investment in Side at January 1,20X8?

A) $230,400
B) $180,000
C) $234,000
D) $203,400