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Clark Corporation purchased 40% of IT Corporation for $340,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends
Clark Corporation purchased 40% of IT Corporation for $340,000 on January 1. On May 20 of the same year, IT Corporation declared total cash dividends of $85,000. At year-end, IT Corporation reported net income of $425,000. The balance in Clark Corporation's Long-Term Investment-IT Corporation account as of December 31 should be: |
$544,000.
$204,000.
$476,000.
$629,000.
$340,000.
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