S/_67437_1/cl/outline Question 4 O out of 10 points The following fact pattern is used in questions 3 through 5: On 1/1/2008 Aero Company purchased 10% of Bert Company's common stock for $80,000, which was equal to 10% of the book value of Beit on 1/1/2008. Aero appropriately used the cost method of accounting for its investment. Aero purchased an additional 25% of Bert's common stock on 1/1/2010 for $190,000 which was also equal to its share of book value at that date. Aero can now exercise significant influence over the operating and financial policies of Bert. The total net income and dividends of Bert are as follows: Year Net Income Dividends 2008 $50,000 $20,000 $75,000 $30,000 2009 $50,000 2010 $100,000 Based on the information given above, what is the carrying value of the investment in Bert on Aero's books after any adjustments made on 1/1/2010 to account for its additional purchase of Bert shares? Selected Answer: 5. None of the above S/_67437_1/cl/outline Question 4 O out of 10 points The following fact pattern is used in questions 3 through 5: On 1/1/2008 Aero Company purchased 10% of Bert Company's common stock for $80,000, which was equal to 10% of the book value of Beit on 1/1/2008. Aero appropriately used the cost method of accounting for its investment. Aero purchased an additional 25% of Bert's common stock on 1/1/2010 for $190,000 which was also equal to its share of book value at that date. Aero can now exercise significant influence over the operating and financial policies of Bert. The total net income and dividends of Bert are as follows: Year Net Income Dividends 2008 $50,000 $20,000 $75,000 $30,000 2009 $50,000 2010 $100,000 Based on the information given above, what is the carrying value of the investment in Bert on Aero's books after any adjustments made on 1/1/2010 to account for its additional purchase of Bert shares? Selected Answer: 5. None of the above