Question
On January 1, Belleville Company paid $1,970,000 to acquire 98,500 shares of O'Fallons voting common stock, which represents a 40 percent investment. No allocations to
On January 1, Belleville Company paid $1,970,000 to acquire 98,500 shares of O'Fallons voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $2 per share dividend during the year and reported net income of $598,000. What is the balance in the Investment in O'Fallon account found in Bellevilles financial records as of December 31?
Multiple Choice
-
$2,132,200.
-
$2,012,200.
-
$2,072,200.
-
$2,209,200.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started