Question
Spinebill Corporation bought 80% of Nectar Companys common stock at its book value of $500,0 00 on January 1, 2005. During 2005, Nectar reported a
Spinebill Corporation bought 80% of Nectar Company’s common stock at its book value of $500,0 00 on January 1, 2005. During 2005, Nectar reported a net income of $150,000 and paid dividends of $45,000. At what amount should Spinebill’s Investment in Nectar account be reported on December 31, 2005?
a. $500
b. $548
c. $584
d. $605
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Financial accounting
Authors: Walter T. Harrison Jr., Charles T. Horngren, C. William Thom
9th edition
978-0132751216, 132751127, 132751216, 978-0132751124
