Answered: amounted to OMR 875,000. What is the…

Business

Accounting

amounted to OMR 875,000. What is the entry of the cost method to record its investment.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Jane Company purchased 80% of the outstanding voting shares of
Snow Company at the beginning of 2019 for OMR 850,000. At the
time of purchase, Snow company total stockholder's equity
amounted to OMR 875,000. What is the entry of the cost method to
record its investment.
Select one:
a.
Investment in Snow Company Dr
850,000
Cash Cr
850,000
b. None of the other points
OC.
Investment in Snow Company Dr
875,000
875,000
Cash Cr
Od.
Investment in Snow Company Dr
320,000
320,000
Cash Cr

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