On January 1,2019,Barry Corporation paid $750,000 for 100,000 shares of Oak Company's common stock,which represents 40% of Oak's outstanding common stock.For the year ending December 31,2019,Oak reported net income of $190,000 and declared and paid cash dividends of $60,000.Barry should report the investment in Oak Company on its balance sheet at December 31,2019 at:
A)$750,000.
B)$698,000.
C)$774,000.
D)$802,000.

Question

Quizplus · Accepted Answer

$750,000 + ($190,000 × 40%)- ($60,000 × 40%)= $802,000

On January 1,2019,Barry Corporation Paid $750,000 for 100,000 Shares of Oak