On January 2 Angle Corporation Acquired 40% of the Outstanding

question 82

Multiple Choice

On January 2 Angle Corporation acquired 40% of the outstanding common stock of Bobbe Company for $550000. For the year ended December 31 Bobbe reported net income of $90000 and paid cash dividends of $30000 on its common stock. At December 31 the carrying value of Angle's investment in Bobbe under the equity method is

• A) $538000.
• B) $550000.
• C) $586000.
• D) $574000.

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