Parent Corp acquired 100% of Sub Co. on January 1, Year 1, for $10,000,000. The acquisition resulted in annual amortization of $50,000. During Year 1, Sub Co. reported net income of $800,000 and paid dividends of $200,000. What is the Investment in Sub Co. balance on Parent Corp's books as of December 31, Year 1, under the equity method? a. $10,000,000 b. $10,550,000 c. $10,600,000 d. $10,800,000

Parent Corp acquired 100% of Sub Co. on January 1, Year 1, for $10,000,000. The acquisition resulted in annual amortization of $50,000. During Year 1, Sub Co. reported net income of $800,000 and paid dividends of $200,000. What is the Investment in Sub Co. balance on Parent Corp's books as of December 31, Year 1, under the equity method? a. $10,000,000 b. $10,550,000 c. $10,600,000 d. $10,800,000

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter13: Investments And Long-term Receivables

Section: Chapter Questions

Problem 2MC: During 2021, Anthony Company purchased debt securities as a long-term investment and classified them...

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