Company B purchased 30% of Company A's shares for $1,000,000.During the year,Company A had net income of $150,000 and declared a dividend of $24,000.What would the carrying value of Company A be at the end of the year?

Name: Company B purchased 30% of Company A's shares for $1,000,000.During the year,Company A had net income of $150,000 and declared a dividend of $24,000.What would the carrying value of Company A be at the end of the year?
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Question

Quizplus · Accepted Answer

$1,000,000+(.30 x $150,000)- (.30 x $24,000)

Company B Purchased 30% of Company A's Shares for $1,000,000