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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A:

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Consolidation

Consolidation in general examination implies an asset oscillating between well-defined methods of trading status. Consolidation is commonly known as market indecisiveness, which completes when the asset's values move forward or backward the trading structure.