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15. Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2022 for $400,000. During 2022, Doane earned $80,000 and paid dividends
15. Rich, Inc. acquired 30% of Doane Corporation's voting stock on January 1, 2022 for $400,000. During 2022, Doane earned $80,000 and paid dividends of $50,000. Rich's 30% interest in Doane gives Rich the ability to exercise significant influence over Doane's operating and financial policies. Thus, Rich appropriately uses the Equity method to account for the investment. The carrying amount of this investment in Rich's December 31, 2022 balance sheet should be a. $430,000. b. $424,000. c. $409,000. d. $400,000.
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