Question
The summarized balance sheets of Goebel Company and Dobbs Company as of December 31, 2018 are as follows: Goebel Company Balance Sheet December 31, 2018
The summarized balance sheets of Goebel Company and Dobbs Company as of December 31, 2018 are as follows:
Goebel Company
Balance Sheet
December 31, 2018
Assets $2,400,000
Liabilities $ 300,000
Capital stock 1,200,000
Retained earnings 900,000
Total equities $2,400,000
Dobbs Company
Balance Sheet
December 31, 2018
Assets $1,800,000
Liabilities $410,000
Capital stock 1,150,000
Retained earnings 240,000
Total equities $1,800,000
15. If Goebel Company acquired a 20% interest in Dobbs Company on December 31, 2018 for $350,000 and the fair value method of accounting for the investment were used, the amount of the debit to Equity Investments (Dobbs) would have been
a. $278,000.
b. $230,000.
c. $350,000.
d. $360,000.
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Cost Accounting Principles And Applications
Authors: Horace Brock, Linda Herrington, La Vonda Ramey
7th Edition
0071115609, 978-0071115605
