Heartfelt Company Owns a 40% Interest in the Voting Common

question 52

Multiple Choice

Heartfelt Company owns a 40% interest in the voting common stock of Candle Corporation,and Heartfelt accounts for the investment using the equity method.During 2019,Candle Corporation reported net income of $100,000 and declared and paid cash dividends of $10,000.The carrying value of the Candle investment was $500,000 on January 1,2019.
- At what amount is the Candle investment reported on the December 31,2019 balance sheet of Heartfelt Company?

• A)$496,000.
• B)$500,000.
• C)$536,000.
• D)$540,000.

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Definitions:

Stimulation

The action of encouraging interest or activity in something, often related to sensory or psychological engagement and motivation.

Fanatical Groups

Organizations or collectives characterized by extreme and uncritical zeal or fervor, often exhibiting intense or irrational commitment to a cause or belief.

Cultural Icons

Symbols or figures that are widely recognized and represent significant cultural meanings or values.

Superego

In psychoanalytic theory, it represents the ethical component of the personality and provides the moral standards by which the ego operates.