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On January 2, 2023, Ayayai Corp. purchased 200 of the 1000 outstanding common shares of Wildhorse Ltd. for $57000. During 2023, Wildhorse declared total cash dividends of $7000 and reported net income for the year of $40000. If Ayayai uses the cost model to account for its investment in Wildhorse, Ayayai's Investment in Wildhorse Ltd. account at December 31, 2023 should be O $55600. O $57000. O $63600. O $65000.

On January 2, 2023, Ayayai Corp. purchased 200 of the 1000 outstanding common shares of Wildhorse Ltd. for $57000. During 2023, Wildhorse declared total cash dividends of $7000 and reported net income for the year of $40000. If Ayayai uses the cost model to account for its investment in Wildhorse, Ayayai's Investment in Wildhorse Ltd. account at December 31, 2023 should be O $55600. O $57000. O $63600. O $65000.

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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On January 2, 2023, Ayayai Corp. purchased 200 of the 1000 outstanding common shares of Wildhorse Ltd. for $57000. During 2023, Wildhorse declared total cash dividends of $7000 and reported net income for the year of $40000. If Ayayai uses the cost model to account for its investment in Wildhorse, Ayayai's Investment in Wildhorse Ltd. account at December 31, 2023 should be O $55600. O $57000. O $63600. O $65000.
Transcribed Image Text:On January 2, 2023, Ayayai Corp. purchased 200 of the 1000 outstanding common shares of Wildhorse Ltd. for $57000. During 2023, Wildhorse declared total cash dividends of $7000 and reported net income for the year of $40000. If Ayayai uses the cost model to account for its investment in Wildhorse, Ayayai's Investment in Wildhorse Ltd. account at December 31, 2023 should be O $55600. O $57000. O $63600. O $65000.
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