Question
On January 1, 2024, MNO purchased 30 percent of the 10,000 shares of the outstanding common shares, of RST for $60,000 cash (and properly computed
On January 1, 2024, MNO purchased 30 percent of the 10,000 shares of the outstanding common shares, of RST for $60,000 cash (and properly computed goodwill of $5,000 amortizable over 10 years). On December 31, 2024, RST reported net income of $40,000 and declared a cash dividend of $2 per share. Select the appropriate combination below for the December 31, 2024, account balances to be reported by MNO.
| Balance sheet-DEC. 31, 2024 | Income Statement-2024 | |
| Investment Account | Investment Revenue | |
| 1) | $60,000 | $6,000 |
| 2) | $65,500 | $5,500 |
| 3) | $65,500 | $11,500 |
| 4) | $65,500 | $12,000 |
Multiple Choice
Choice 1
Choice 2
Choice 3
Choice 4
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Auditing A Risk Based Approach to Conducting a Quality Audit
Authors: Karla Johnstone, Audrey Gramling, Larry E. Rittenberg
10th edition
1305080572, 978-1305465664, 1305465660, 978-1305080577
