3. Beaver Inc. purchases 40 percent (8,000 shares) of DC Enterprises' outstanding common stock (20,000 shares), paying $120 per share. Later in the year, Beaver receives a dividend of $1.75 per share; at year-end Beaver receives DC's income statement showing that the company earned $62,000 for the year. For purposes of this problem, assume Beaver is able to exercise significant influence over DC and therefore uses the equity method. The DC stock is selling for $127 per share at year-end.

3A: What is the ending balance of the DC stock on Beaver's BALANCE SHEET at year end?

Question part A options:

998,800

970,800

974,000

1,016,000

________________

3B: If Apple Corporation owns 85% of Bee Inc., how much of Bee's revenue will be reported on Apple's Income statement in total revenues?

Question part B options:

	0%
	50%
	85%
	100%