Question $7$

$3\mathrm{.}45$ pts

Portney, Inc. acquired $30\%$ of Davis Corporation's voting stock on January $1,2024$ for $$1,000,000.$ In $2024,$ Davis earned $$400,000$ and paid dividends of $$250,000.$ Portney's $30\%$ interest in Davis gives Portney the ability to exercise significant influence over the operating and financial policies of Davis Corporation.

The carrying amount of this investment in Portney's December $31,2024$ balance sheet should be

$$1,045,000$

$$1,000,000$

$$1,120,000$

$$1,150,000$

Ouestion $8$

$3\mathrm{.}45bts$

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