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4 . Pacer Company purchased 3 0 0 of the 1 , 0 0 0 outstanding shares of Queen Company s common stock for $

4. Pacer Company purchased 300 of the 1,000 outstanding shares of Queen Companys common stock for $80,000 on January 2,2008. During 2009, Queen Company declared dividends of $8,000 and reported earnings for the year of $20,000.
If Pacer Company uses the equity method of accounting for its investment in Queen Company, its Investment in Queen Company account at December 31,2009 should be
a. $100,000
b. $88,000
c. $83,600
d. $80,000

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