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my answer key states that the answer is D, but i keep getting B. please explain. On January 1, 2016, Tremen Corporation acquired 45% of
my answer key states that the answer is D, but i keep getting B. please explain.
On January 1, 2016, Tremen Corporation acquired 45% of the shares of Delany Company. Tremen paid $3,000,000 for the investment, and that amount is exactly equal to 45% of the book value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,250,000 for 2016 , and paid $75,000 of dividends each quarter to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of: A. $4,115,000 B. $3,528,750 C. $3,697,500 D. $3,427,500 Step by Step Solution
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