Olivia Co.owns 5,600 of the 14,000 outstanding shares of Hobbitt Corp.common stock and exercises significant influence over the company.During 2011,Hobbitt earns $90,000 and pays cash dividends of $25,000.If the beginning balance in the investment account was $190,000,the balance at December 31,2011 should be:

Question

Quizplus · Accepted Answer

$190,000+40%*$90,000-40%*$25,000

Olivia CoOwns 5,600 of the 14,000 Outstanding Shares of Hobbitt Corp