$4$

$(1)$

Required information

Pone Company purchased $100$ percent of Sone Incorporated on January $1,205$ for $$625,000.$ Sone reported earnings of $$76,000$ and declared dividends of $$8,000$ during $205.$

Part $2$ of $2$

Based on the preceding information and assuming Pone uses the equity method to account for its investment in Sone, what is the balance in Pone's Investment in Sone account on December $31,20$X$5,$ prior to consolidation?

Multiple Choice

$$617,000$

$$625,000$

$$633,000$