Whopper Corporation owns a (40 %) interest in BigMac Corporation, which it purchased for ($ 2.5) million.
Question:
Whopper Corporation owns a \(40 \%\) interest in BigMac Corporation, which it purchased for \(\$ 2.5\) million. During fiscal year 2018, BigMac paid cash dividends of \(\$ 50,000\) and reported net income of \(\$ 700,000\). What is the value of Whopper's investment in BigMac reported on its 2018 statement of financial position?
a. \(\$ 3,150,000\)
b. \(\$ 2,500,000\)
c. \(\$ 2,760,000\)
d. \(\$ 2,450,000\)
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Related Book For
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
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