MC Qu. 88 LO 12-05, 12-06 On July 1, 2013, Tremen Corporation acquired...

On July 1, 2013, Tremen Corporation acquired 35% of the shares of Delany Company. Tremen paid $3,140,000 for the investment, and that amount is exactly equal to 35% of the fair value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,500,000 for 2013, and paid $330,000 dividends to its shareholders. Assume net income and dividends accrue evenly throughout the year. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of:

$3,402,500.

$3,344,750.

$3,549,500.

$3,689,500.