A corporation using the cost method of accounting for its investment in a 80% owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 120,000$? Select one: 1a. 100,000 Ob. 120,000 C. 112,000 d. 115,000

A corporation using the cost method of accounting for its investment in a 80% owned investee, which earned $20,000 and paid $5,000 in dividends What is the ending balance of investment on 31/12 if investment in 1/1 amount 120,000$? Select one: 1a. 100,000 Ob. 120,000 C. 112,000 d. 115,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

A corporation using the cost method of accounting for its investment in a 80% owned investee,
which earned $20,000 and paid $5,000 in dividends
What is the ending balance of investment on 31/12 if investment in 1/1 amount 120,000$?
Select one:
2a. 100,000
b. 120,000
C. 112,000
d. 115,000

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