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Company A purchased 44% ($250,000) of Company b in common stock at an 8% discount. He paid $5,700 in commissions. At the end of the year Company A. should have an adjusted balance in his Company b. investment account of ______________ .

Company A purchased 44% ($250,000) of Company b in common stock at an 8% discount. He paid $5,700 in commissions. At the end of the year Company A. should have an adjusted balance in his Company b. investment account of ______________ .

FINANCIAL ACCOUNTING
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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Company A purchased 44% ($250,000) of Company b in common stock at an 8% discount. He paid $5,700 in commissions.

At the end of the year Company A. should have an adjusted balance in his Company b. investment account of ______________ .

a.
Debit Investment $276,620

b.
Investment Credit of $276,620

c.
Debit to Investments of $304,780

d.
Investment Credit of $304,780

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