Carla Vista Company purchased 200 of the 1000 outstanding shares of Metlock Company's common stock for $550000 on January 2, 2021. During 2021, Metlock Company declared dividends of $75000 and reported earnings for the year of $350000. If Carla Vista Company used the fair value method of accounting for its investment in Metlock Company, its Equity Investments (Metlock) account on December 31, 2021 should be $605000. $620000. $550000. $535000.
Carla Vista Company purchased 200 of the 1000 outstanding shares of Metlock Company's common stock for $550000 on January 2, 2021. During 2021, Metlock Company declared dividends of $75000 and reported earnings for the year of $350000. If Carla Vista Company used the fair value method of accounting for its investment in Metlock Company, its Equity Investments (Metlock) account on December 31, 2021 should be $605000. $620000. $550000. $535000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Carla Vista Company purchased 200 of the 1000 outstanding shares of Metlock Company's common stock for $550000 on January 2, 2021. During 2021, Metlock Company declared dividends of $75000 and reported earnings for the year of $350000.
If Carla Vista Company used the fair value method of accounting for its investment in Metlock Company, its Equity Investments (Metlock) account on December 31, 2021 should be
|
$605000. |
|
$620000. |
|
$550000. |
|
$535000. |
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