Question
On January 1, 2021, Goyeche Corporation purchased 30% of the common shares of Grafenburg Limited for $400,000. During 2021, Grafenburg Limited paid cash dividends of
On January 1, 2021, Goyeche Corporation purchased 30% of the common shares of Grafenburg Limited for $400,000. During 2021, Grafenburg Limited paid cash dividends of $60,000 and had profit of $300,000. During the same period, Goyeche earned $500,000 and paid dividends of $125,000. Both corporations have a December 31 year end. On December 31, 2021, the balance in Goyeche's Investment in Associate–Grafenburg Common Shares account is
Select one:
A. $192,000.
B. $400,000.
C. $640,000.
D.$472,000.
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Cornerstones of Financial Accounting
Authors: Jay Rich, Jeff Jones
4th edition
978-1337690881, 9781337669450, 1337690880, 1337690899, 1337669458, 978-1337690898
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