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Peregrine Company acquires 30% of the voting stock of Falcon Corporation for $6,000,000 on January 1, 2014. At the time, the book value of Falcon
Peregrine Company acquires 30% of the voting stock of Falcon Corporation for $6,000,000 on January 1, 2014. At the time, the book value of Falcon was $20,000,000. During 2014 Falcon reported net income of $2,000,000 and paid dividends of $500,000. Both companies have December 31 year-ends. What is the investment balance on Peregrine's balance sheet on December 31, 2014? a. $6,000,000 b. $6,150,000 C. $6,600,000 d. $6,450,000
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