On January 2, 2010, Dellgate Corp. purchased 27% of Galaxy Corporation's voting stock for $125,000. During 2010, Galaxy recorded income of $214,000 and paid total dividends of $17,000. Dellgate uses the cost method to account for this investment. What is the December 31, 2010, balance sheet value of Dellgate's long-term equity investment in Galaxy?
A) $125,000
B) $178,190
C) $187,370
D) $86,940
Correct Answer:
Verified
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