On January 1 of the current year,Conner Corporation purchased 100,000 of the 400,000 shares of outstanding stock of JJ Company for $560,000.Net income reported by JJ Company for the year was $600,000.Dividends declared and paid by JJ Company during the year were $130,000.The Equity-method Investment will be reported on Conner Corporation's December 31 balance sheet for the current year in the amount of:
A)$560,000.
B)$592,500.
C)$677,500.
D)$742,500.

Question

Quizplus · Accepted Answer

$560,000 + ($600,000 × 0.25)- ($130,000 × 0.25)= $677,500

On January 1 of the Current Year,Conner Corporation Purchased 100,000