Solve this accounting question not use ai On January 1, 2013, Pacer Company paid $2,020,000 for 60,000shares of Lennon Co.'s voting common stock which represents a35% investment. No allocation to goodwill or other specificaccount was made. Significant influence over Lennon wasachieved by this acquisition. Lennon distributed a dividend of$3.00 per share during 2013 and reported a net income of$820,000.What was the balance in the Investment in Lennon Co. accountfound in the financial records of Pacer as of December 31, 2013?a) $2,207,000b) $2,027,000c) $2,702,000d) $2,127,000e) $1,920,000

Step 1: Define Common StockCommon stock represents the ownership of an investor in the company. When…

Answered: On January 1, 2013, Pacer Company paid…

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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What was the balance in the investment in Lennon co. Account found in the financial records of pacer as of December 31, 2013?
On July 1, 2016, Miller Company purchased 25% of Wall Company’s outstanding ordinary shares and no goodwill resulted from the purchase. Miller appropriately carried this investment at equity and the balance in Miller’s investment account was ₱1,900,000 on December 31, 2016. Wall Company reported net income of ₱1,200,000 for the year ended December 1, 2016, and paid dividend totaling ₱480,000 on December 31, 2016. How much did Miller pay for the 25% interest in Wall? a. 1,720,000b. 2,020,000c. 1,870,000d. 2,170,000 What is the solution for option C?
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