Barry Corporation earns $240,000 and pays cash dividends of $80,000 during 2008. Glenon Corporation owns 3,000 of the 10,000 outstanding shares of Barry.
-What amount should Glenon show in the investment account at December 31, 2008 if the beginning of the year balance in the account was $320,000?

Question

Quizplus · Accepted Answer

$320,000 + ($240,000 × .3) - ($80,000 × .3) = $368,000.

Barry Corporation Earns $240,000 and Pays Cash Dividends of $80,000