On January 1, Belleville Company paid $1,710,000 to acquire 57,000 shares of O'Fallon's voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $3 per share dividend during the year and reported net income of $590,000. What is the balance in the Investment in O'Fallon account found in Belleville's financial records as of December 31? Multiple Choice O о O O $1,946,000. $1,835,000. $1,895,000. $1,775,000.
On January 1, Belleville Company paid $1,710,000 to acquire 57,000 shares of O'Fallon's voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $3 per share dividend during the year and reported net income of $590,000. What is the balance in the Investment in O'Fallon account found in Belleville's financial records as of December 31? Multiple Choice O о O O $1,946,000. $1,835,000. $1,895,000. $1,775,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On January 1, Belleville Company paid $1,710,000 to acquire 57,000
shares of O'Fallon's voting common stock, which represents a 40
percent investment. No allocations to goodwill or other specific accounts
were made. Significant influence over O'Fallon is achieved by this
acquisition, and so Belleville applies the equity method. O'Fallon
declared a $3 per share dividend during the year and reported net
income of $590,000. What is the balance in the Investment in O'Fallon
account found in Belleville's financial records as of December 31?
Multiple Choice
O
O
O
O
$1,946,000.
$1,835,000.
$1,895,000.
$1,775,000.
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