P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2014, had income of $40,000, declared dividends of $15,000, On December 31, 2014, the Balance of investment in S inc amount in P Corporation books On December 31, 2014 if it used equity methods . Select one: a. 150,000 b. 150,500 c. 157,500 d. 147,500
P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2014, had income of $40,000, declared dividends of $15,000, On December 31, 2014, the Balance of investment in S inc amount in P Corporation books On December 31, 2014 if it used equity methods . Select one: a. 150,000 b. 150,500 c. 157,500 d. 147,500
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
ChapterA2: Investments
Section: Chapter Questions
Problem 25E
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P Corporation paid $140,000 for a 70% interest in S Inc. on January 1, 2014, when S had Capital Stock of $50,000 and Retained Earnings of $100,000. Fair values of net assets were the same as recorded book values. During 2014, had income of $40,000, declared dividends of $15,000, On December 31, 2014, the Balance of investment in S inc amount in P Corporation books On December 31, 2014 if it used equity methods .
Select one:
a. 150,000
b. 150,500
c. 157,500
d. 147,500
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