Whopper Corporation owns a (40 %) interest in BigMac Corporation, which it purchased for ($ 2.5) million.

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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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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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