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24 Dublin Company holds a 30% stake in Club Company which was purchased in 2021 at a cost of $3,000,000. After applying the equity method,
24 Dublin Company holds a 30% stake in Club Company which was purchased in 2021 at a cost of $3,000,000. After applying the equity method, the Investment in Club Company account has a balance of $3,040,000. At December 31, 2021 the fair value of the investment is $3,120,000. Which of the following values is acceptable for Dublin to use in its balance sheet at December 31, 2021? I. $3,000,000 II. $3,040,000 III. $3,120,000 a. I, II, or III. b. I or Il only. C. ll only d. ll or Ill only -9- 27.. Nagel Co.'s prepaid insurance was $190,000 at December 31, 2021 and $90,000 at December 31, 2020. Insurance expense was $62,000 for 2021 and $54,000 for 2020. What amount of cash disbursements for insurance would be reported in Nagel's 2021 net cash provided by operating activities presented on a direct basis? a. $198.000 b. $162,000 C. $128,000. d. $62,000 28. Foxx Corp.'s comparative balance sheet at December 31, 2021 and 2020 reported accumulated depreciation balances of $1,245,000 and $900,000, respectively. Property with a cost of $75,000 and a carrying amount of $57,000 was the only property sold in 2021. Depreciation charged to operations in 2021 was a. $327,000 b. $345,000. C. $363.000 d. $402,000
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