# Jackson Moving & Storage Co. paid $120,000 for 25% of the common stock ofMcDonough Co. at the beginning of the year. During the year, McDonough earned netincome of$50,000 and paid dividends of $20,000. The carrying value of Jackson’s investment in McDonough at the end of the year isa.$150,000.b. $170,000.c.$120,000.d. $127,500. Question Jackson Moving & Storage Co. paid$120,000 for 25% of the common stock of
McDonough Co. at the beginning of the year. During the year, McDonough earned net
income of $50,000 and paid dividends of$20,000. The carrying value of Jackson’s investment in McDonough at the end of the year is
a. $150,000. b.$170,000.
c. $120,000. d.$127,500.