On January 1, 2014, Garner Corporation purchased 30% of the ordinary shares outstanding of Landon Corporation for $200,000. During 2014, Landon Corporation reported net income of $80,000 and paid cash dividends of $40,000. The balance of the Share Investments-Landon account on the books of Garner Corporation at December 31, 2014 is

Question

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To calculate the ending balance of the Share Investments-Landon account, we need to take into account the following:

1. Garner Corporation purchased 30% of the ordinary shares outstanding of Landon Corporation for $200,000 on January 1, 2014.
2. Landon Corporation reported net income of $80,000 during 2014.
3. Landon Corporation paid cash dividends of $40,000 during 2014.

First, we need to calculate the share of net income earned by Garner Corporation during 2014, which is equal to:
$80,000 x 30% = $24,000

Second, we need to subtract the share of dividends received by Garner Corporation during 2014, which is equal to:
$40,000 x 30% = $12,000

Therefore, the net increase in the Share Investments-Landon account during 2014 is equal to:
$200,000 + $24,000 - $12,000 = $212,000

Thus, the correct answer is D) $212,000.

On January 1, 2014, Garner Corporation Purchased 30% of the Ordinary