Park Company Acquired a 90% Interest in Southwestern Company on December

question 2

Multiple Choice

Park Company acquired a 90% interest in Southwestern Company on December 31, 2013, for $320,000.During 2014 Southwestern had a net income of $22,000 and paid a cash dividend of $7,000.Applying the cost method would give a debit balance in the Investment in Stock of Southwestern Company account at the end of 2014 of:

• A)$335,000
• B)$333,500
• C)$313,700
• D)$320,000

---

Definitions:

High Wage Rates

Refers to employment compensation that is at the upper end of the pay scale within a specific industry or region.

Beaten Paths

Well-established or conventional routes or methods often followed due to familiarity rather than efficiency or innovation.

Employment Contacts

Written or verbal agreements between employers and employees detailing the terms of employment, including responsibilities, compensation, and duration.

Job Information

Data or details about occupations, including duties, required skills, trends, and available positions.