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On January 1,20X1,Belle Ltd

Question 1

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On January 1,20X1,Belle Ltd.purchased 100% of the common shares of Dominique Corporation for $700,000.Dominique's net income was $30,000 for 20X1 and $50,000 for 20X2.DA paid dividends of $20,000 on its common shares during 20X1 and $100,000 during 20X2.As such,total dividends paid by Dominique exceeded income earned by Dominique since it was acquired by Belle.What is the balance in the investment in Dominique's account at the end of 20X2 under the cost and equity methods?


A) On January 1,20X1,Belle Ltd.purchased 100% of the common shares of Dominique Corporation for $700,000.Dominique's net income was $30,000 for 20X1 and $50,000 for 20X2.DA paid dividends of $20,000 on its common shares during 20X1 and $100,000 during 20X2.As such,total dividends paid by Dominique exceeded income earned by Dominique since it was acquired by Belle.What is the balance in the investment in Dominique's account at the end of 20X2 under the cost and equity methods? A) B) C) D)
B) On January 1,20X1,Belle Ltd.purchased 100% of the common shares of Dominique Corporation for $700,000.Dominique's net income was $30,000 for 20X1 and $50,000 for 20X2.DA paid dividends of $20,000 on its common shares during 20X1 and $100,000 during 20X2.As such,total dividends paid by Dominique exceeded income earned by Dominique since it was acquired by Belle.What is the balance in the investment in Dominique's account at the end of 20X2 under the cost and equity methods? A) B) C) D)
C) On January 1,20X1,Belle Ltd.purchased 100% of the common shares of Dominique Corporation for $700,000.Dominique's net income was $30,000 for 20X1 and $50,000 for 20X2.DA paid dividends of $20,000 on its common shares during 20X1 and $100,000 during 20X2.As such,total dividends paid by Dominique exceeded income earned by Dominique since it was acquired by Belle.What is the balance in the investment in Dominique's account at the end of 20X2 under the cost and equity methods? A) B) C) D)
D) On January 1,20X1,Belle Ltd.purchased 100% of the common shares of Dominique Corporation for $700,000.Dominique's net income was $30,000 for 20X1 and $50,000 for 20X2.DA paid dividends of $20,000 on its common shares during 20X1 and $100,000 during 20X2.As such,total dividends paid by Dominique exceeded income earned by Dominique since it was acquired by Belle.What is the balance in the investment in Dominique's account at the end of 20X2 under the cost and equity methods? A) B) C) D)

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