On July 1, 2019, Tremen Corporation acquired 48% of the shares of Delany Company. Tremen paid OMR 200,000 for the investment, and that amount is exactly equal to 48% of the fair value of identifiable net assets on Delany's statement of financial position. Delany recognized net income of OMR 35,000 for 2019, and paid OMR 22,000 dividends to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of: Select one: A. 216,800 B. 206,240 C. 200,000 D. 210,560
On July 1, 2019, Tremen Corporation acquired 48% of the shares of Delany Company. Tremen paid OMR 200,000 for the investment, and that amount is exactly equal to 48% of the fair value of identifiable net assets on Delany's statement of financial position. Delany recognized net income of OMR 35,000 for 2019, and paid OMR 22,000 dividends to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of: Select one: A. 216,800 B. 206,240 C. 200,000 D. 210,560
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 14RE
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On July 1, 2019, Tremen Corporation acquired 48% of the shares of Delany Company. Tremen paid OMR 200,000 for the investment, and that amount is exactly equal to 48% of the fair value of identifiable net assets on Delany's
Select one:
A.
216,800
216,800
B.
206,240
206,240
C.
200,000
200,000
D.
210,560
210,560
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