Daniel Company purchased 34% of the outstanding shares of Clooney Corporation on January 1 at a cost of $620,000.Clooney Corporation reported net income of $93,000 and declared and paid total dividends of $20,000 for the year.At the end of the year,Clooney shares had a current fair value of $614,000.After all necessary adjusting entries are made for the year,the balance in Daniel Company's Equity-method Investment account will be:
A)$614,000.
B)$644,820.
C)$693,000.
D)$687,000.

Question

Quizplus · Accepted Answer

$620,000 + ($93,000 × 34%)- ($20,000 × 34%)= $644,820

Daniel Company Purchased 34% of the Outstanding Shares of Clooney