ACC 410-Exam 1-Fa" 2018 3. Penn Corp. paid S90.000 for 30% of the outstanding common stock of Star Company on January 1, 2019. At that time, Star had the following condensed balance sheet: Carrying amounts S 80,000 380,000 200,000 260,000 Current assets Plant and equipment, net Liabilitics Stockholders' equity fair value of the plant and equipment, with a six-year remaining useful life, was $60,000 The more than for all other assets and liabilities. For the year ended December 31, 2019, Star Company reported $80,000 of net income, and declared $30,000 dividends. What amount should Penn ts recorded carrying amount. The fair values and carrying amounts were equal report as Investment in Star Company on its December 31, 2019 balance sheet? a. $90,000 b. $114,000 c. $95,000 d. $92,000 When the equity method is used to account for investments in common stock, which of the following affects the investor's reported investment income? Cash dividends A change in market value of investee's common stock No No Yes Yes No Yes No Yes a. C. d. ACC 410-Exam 1-Fa" 2018 3. Penn Corp. paid S90.000 for 30% of the outstanding common stock of Star Company on January 1, 2019. At that time, Star had the following condensed balance sheet: Carrying amounts S 80,000 380,000 200,000 260,000 Current assets Plant and equipment, net Liabilitics Stockholders' equity fair value of the plant and equipment, with a six-year remaining useful life, was $60,000 The more than for all other assets and liabilities. For the year ended December 31, 2019, Star Company reported $80,000 of net income, and declared $30,000 dividends. What amount should Penn ts recorded carrying amount. The fair values and carrying amounts were equal report as Investment in Star Company on its December 31, 2019 balance sheet? a. $90,000 b. $114,000 c. $95,000 d. $92,000 When the equity method is used to account for investments in common stock, which of the following affects the investor's reported investment income? Cash dividends A change in market value of investee's common stock No No Yes Yes No Yes No Yes a. C. d