Refer to the facts in problem 4).If Pacer Company uses the lower of cost or market method of accounting for its investment in Queen Company,and the value of its investment hasn't changed,its Investment in Queen Company account on December 31,2013,should be

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According to problem 4), the cost of Pacer Company's investment in Queen Company is $80,000 and the current market value is $88,000. Since the lower of cost or market method is being used, Pacer company should record its investment at the lower of the cost or market value. Since the market value is higher than the cost, the investment would be recorded at its cost of $80,000. If the value of the investment hasn't changed, then the Investment in Queen Company account on December 31, 2013 should also be $80,000. Therefore, the best choice is C) $80,000.

Refer to the Facts in Problem 4)