Use the Following Information for Questions

question 68

Multiple Choice

Use the following information for questions
Fossil Company purchased 200 of the 1,000 outstanding shares of Ericksen Company's common shares for $60,000 on January 2, 2011.During 2011, Ericksen Company declared dividends of
$10,000 and reported earnings for the year of $40,000.
-If Fossil Company uses the equity method of accounting for its investment in Ericksen Company, its Investment in Ericksen Company account at December 31, 2011 should be

• A)$58,000.
• B)$66,000.
• C)$60,000.
• D)$68,000.

---

Definitions:

Instincts

Innate, biologically determined behavioral responses characteristic of a species, often triggered by specific external stimuli.

Sense of Attachment

The emotional bond that forms between individuals, often starting from infancy, that affects their relationships throughout life.

Life Instincts

In psychoanalytic theory, the innate drives that contribute to survival, growth, and creativity, as opposed to death instincts which relate to aggression and self-destructive behaviors.

Organismic Valuing Processes

Internal evaluative processes through which individuals judge experiences in terms of their value for fostering or hindering their own growth and development.