Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for $520000 on January 2, 2021. During 2021, Sheridan Company declared dividends of $60000 and reported earnings for the year of $320000. If Pharoah Company used the fair value method of accounting for its investment in Sheridan Company, its Equity Investments (Sheridan) account on December 31, 2021 should be $508000. $584000. $572000. $520000.
Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for $520000 on January 2, 2021. During 2021, Sheridan Company declared dividends of $60000 and reported earnings for the year of $320000. If Pharoah Company used the fair value method of accounting for its investment in Sheridan Company, its Equity Investments (Sheridan) account on December 31, 2021 should be $508000. $584000. $572000. $520000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Pharoah Company purchased 200 of the 1000 outstanding shares of Sheridan Company's common stock for $520000 on January 2, 2021. During 2021, Sheridan Company declared dividends of $60000 and reported earnings for the year of $320000.
If Pharoah Company used the fair value method of accounting for its investment in Sheridan Company, its Equity Investments (Sheridan) account on December 31, 2021 should be
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$508000. |
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$584000. |
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$572000. |
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$520000. |
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