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Question 30 Company P purchased 70% stock in company S on Jan 1, 20X1 for $170,000. For the year 201, company S reported a net

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Question 30 Company P purchased 70% stock in company S on Jan 1, 20X1 for $170,000. For the year 201, company S reported a net income of $100,000 and paid dividends of $40,000. At year-end, investment account in the books of company P had a fair market value of $175,000. Under the fair value method Question 31 Company P purchased 90% stock in company S on Jan 1,20XI for $200,000. Company S reported the following information for the ycar 20XI. Also, company S paid a dividend of $40,000 during the year 20XI Under the cquity method, in the books of P 17. P acquired 100% shares of S on Jan 1,2016 for $200,000. On that date reported a common stock of $100,000 and retained earrings of 60,000 eve of a fair value equal to the book value except for equipment that has a fair value of 40,000 above the books value. This equipment that has a remaining use of 10 years During 2018 , reported a net income of $80,000 and paid dividend of $20,000. What will be the balance in the Investment in account on Dec 31, 2018? P use the equity method. $192,000 - $250,000 - $200,000 $191,000 Question 30 Company P purchased 70% stock in company S on Jan 1, 20X1 for $170,000. For the year 201, company S reported a net income of $100,000 and paid dividends of $40,000. At year-end, investment account in the books of company P had a fair market value of $175,000. Under the fair value method Question 31 Company P purchased 90% stock in company S on Jan 1,20XI for $200,000. Company S reported the following information for the ycar 20XI. Also, company S paid a dividend of $40,000 during the year 20XI Under the cquity method, in the books of P 17. P acquired 100% shares of S on Jan 1,2016 for $200,000. On that date reported a common stock of $100,000 and retained earrings of 60,000 eve of a fair value equal to the book value except for equipment that has a fair value of 40,000 above the books value. This equipment that has a remaining use of 10 years During 2018 , reported a net income of $80,000 and paid dividend of $20,000. What will be the balance in the Investment in account on Dec 31, 2018? P use the equity method. $192,000 - $250,000 - $200,000 $191,000

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