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?
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On July 1, 2015, Cleopatra Corporation acquired 25% of the shares of Marcus, Inc. for P1,000,000. At that date, the equity of Marcus was P4,000,000, with all the identifiable assets and liabilities being measured at amounts equal to fair value. The table below shows the profits and losses made by Marcus during 2015 to 2019: Year Profit (Loss) 2015 200,000 2016 2,000,000 2017 2,500,000 2018 160,000 2019 300,000 How much will the Investment in Associate account be debited/credited in 2018? A. No entry B. 40,000 debit C. 1,035,000 credit D. 1,060,000 credit

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