On January 1, 2018, Ramsey Company purchased 35% of the outstanding common shares of the Vapor Company for $70,000 when the net assets were $200,000. During 2018, Vapor Company earned $80,000 and declared a dividend of $40,000. Ramsey accounted for the investment using the equity method.What is the balance in the investment account as of December 31, 2018?
A. $56,000
B. $70,000
C. $84,000
D. $98,000
Answer: C
You might also like to view...
When given a low data collection budget, a researcher's choice of the data collection method is typically limited to:
A) person-administered methods and in-office interviewing B) mail, online and telephone C) mail, in-home and out-of-office interviewing D) mall intercept and mail E) in-home, online or in-office interviewing
When computing earnings per share on common stock, dividends on cumulative, nonconvertible preferred stock should be
a. deducted from net income only if the dividends were declared or paid in the current period. b. deducted from net income regardless of whether the dividends were not paid or declared in the period. c. deducted from net income only if net income is greater than the dividends. d. ignored.
Broadly defined, research is a means of ________
A) setting campaign objectives B) defining problems and evaluating solutions C) selecting optimal benchmarks D) measuring the activities of public relations practitioners
Compared to money market securities, capital market securities have
A) more liquidity. B) longer maturities. C) lower yields. D) less risk.