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On January 1, 2013, Pansy Company acquired a 10% interest in Sunflower Corporation for $80,000 when Sunflower's stockholders' equity consisted of $400,000 capital stock and
On January 1, 2013, Pansy Company acquired a 10% interest in Sunflower Corporation for $80,000 when Sunflower's stockholders' equity consisted of $400,000 capital stock and $100,000 retained earnings. Book values of Sunflower's net assets equaled their fair values on this date. Sunflower's net Income and dividends for 2013 through 2015 were as follows: 2013 2014 $ 8,000 $ 2015 Net Income 10,000 Dividends paid 5,000 $15,000 5,000 5,000 Assume that Pansy Incorporated used the cost method of accounting for its investment in Sunflower. The balance in the Investment in Sunflower account at December 31, 2015 was Select one: a. 80000 b. 76700 C. 81000 d. 83300 e. 95000 Finish attemp
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