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P Corporation purchased an 80% interest in S Corporation on January 1, 2013, at book value for $300,000. Ss net income for 2013 was $90,000
P Corporation purchased an 80% interest in S Corporation on January 1, 2013, at book value for $300,000. Ss net income for 2013 was $90,000 and no dividends were declared. On May 1, 2013, P reduced its interest in S by selling a 20% interest, or one-fourth of its investment for $90,000. What would be the balance in the Investment of S Corporation account on December 31, 2013?
a. $300,000.
b. $225,000.
c. $279,000.
d. $261,000.
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