JDR Company purchased 40% of the common stock of YRK Corporation on January 1, 20X0, for $2,000,000 as a long-term investment. The records of YRK Corporation showed the following on December 31, 20X0: $$\begin{array} { | l | r | }
\hline 20 X 0 \text { net income } & \$ 290,000 \
\hline \text { Dividends declared and paid during December 20X0 } & \$ 20,000 \
\hline
\end{array}$$ At what amount should JDR report the YRK investment on the December 31, 20X0 statement of financial position?
A) $2,116,000
B) $2,000,000
C) $4,124,000
D) $2,108,000

Question

JDR Company purchased 40% of the common stock of YRK Corporation on January 1, 20X0, for $2,000,000 as a long-term investment. The records of YRK Corporation showed the following on December 31, 20X0: $$\begin{array} { | l | r | } 
\hline 20 X 0 \text { net income } & \$ 290,000 \
\hline \text { Dividends declared and paid during December 20X0 } & \$ 20,000 \
\hline
\end{array}$$ At what amount should JDR report the YRK investment on the December 31, 20X0 statement of financial position?
A) $2,116,000
B) $2,000,000
C) $4,124,000
D) $2,108,000

Quizplus · Accepted Answer

The Answer of JDR Company purchased 40% of the common stock of YRK Corporation on January 1, 20X0, for $2,000,000 as a long-term investment. The records of YRK Corporation showed the following on December 31, 20X0: $$\begin{array} { | l | r | } 
\hline 20 X 0 \text { net income } & \$ 290,000 \
\hline \text { Dividends declared and paid during December 20X0 } & \$ 20,000 \
\hline
\end{array}$$ At what amount should JDR report the YRK investment on the December 31, 20X0 statement of financial position?
A) $2,116,000
B) $2,000,000
C) $4,124,000
D) $2,108,000

JDR Company Purchased 40% of the Common Stock of YRK