Use the following information to answer the question(s) below.
On January 1, 2013, Pansy Company acquired a 10% interest in Sunflower Corporation for $80,000 when Sunflower's stockholders' equity consisted of $400,000 capital stock and $100,000 retained earnings. Book values of Sunflower's net assets equaled their fair values on this date. Sunflower's net income and dividends for 2013 through 2015 were as follows:
-Assume that Pansy has significant influence and uses the equity method of accounting for its investment in Sunflower.The balance in the Investment in Sunflower account at December 31,2015 was
A) $78,200.
B) $80,000.
C) $81,800.
D) $83,300.
Correct Answer:
Verified
Q2: An investor uses the cost method of
Q3: In reference to the determination of goodwill
Q4: Which method of accounting will generally be
Q5: Bart Company purchased a 30% interest in
Q6: Which method of accounting will generally be
Q8: Pinkerton Inc.owns 10% of Sable Company.In the
Q9: Pond Corporation uses the fair value method
Q10: Sadie Corporation's stockholders' equity at December 31,2013
Q11: Which one of the following statements is
Q12: Pelican Corporation acquired a 25% interest in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents