Question
On January 1, 2013, Audrey Corp. paid $800,000 for 100,000 shares of Off Company's common stock, which represents 40% of Off's outstanding common stock. Off
On January 1, 2013, Audrey Corp. paid $800,000 for 100,000 shares of Off Company's common stock, which represents 40% of Off's outstanding common stock. Off reported net income of $200,000 and paid cash dividends of $60,000 during 2013. Audrey should report the investment in Off Company on its December 31, 2013, balance sheet at:
A. $824,000
B. $856,000
C. $800,000
D. $744,000
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Financial Accounting Reporting And Analysis
Authors: Jennifer Maynard
2nd Edition
0198745311, 9780198745310
