Hi expert please give me answer general accounting question Parent Corp bought 100% of Sub Co. on January 1, Year 1, for $5,000,000.Annual amortization of $30,000 resulted from this acquisition. Sub Co.reported a net income of $400,000 in Year 1 and paid $150,000 in dividends.What is the Investment in Sub Co. balance on Parent's books as of December31, Year 1, if the equity method has been applied?a. $5,000,000b. $5,220,000c. $5,400,000d. $5,370,000

Step 1: Definition of Equity Method for Investment AccountingThe equity method is used to account…

Answered: Parent Corp bought 100% of Sub Co. on…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 11MCQ

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General accounting
Financial accounting
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