43.

On January 2, 2021 Oriole Company purchased 30% of the outstanding common stock of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2021 Jobs, Inc. reported net income of $1170000 and distributed dividends of $495000. The ending balance in the Investment in Oriole Company account at December 31, 2021 was $915000 after applying the equity method during 2021. What was the purchase price Oriole Company paid for its investment in Jobs, Inc?

a. $1117500

b. $415500

c. $712500

d. $1414500

49.

Pharoah Construction enters into a contract with a customer to build a warehouse for $990000 on March 30, 2021 with a performance bonus of $60000 if the building is completed by July 31, 2021. The bonus is reduced by $12000 each week that completion is delayed. Pharoah commonly includes these completion bonuses in its contracts and, based on prior experience, estimates the following completion outcomes:

Completed by	Probability
July 31, 2021	60%
August 7, 2021	30%
August 14, 2021	5%
August 21, 2021	5%

The transaction price for this transaction is

a. $635400

b. $1043400

c. $990000

d. $647400