Use the Following Information for Questions

question 25

Multiple Choice

Use the following information for questions
Caraway Corporation earns $120,000 and pays cash dividends of $40,000 during 2011.Macoon Corporation owns 3,000 of the 10,000 outstanding shares of Caraway and exercises significant influence.
-Dielman Co.acquired a 60% interest in Simpson Corp.on December 31, 2011 for $315,000.During 2012, Simpson had net income of $200,000 and paid cash dividends of
$50,000.Assuming Dielman used the equity method, at December 31, 2012, the balance in the investment account should be

• A)$405,000.
• B)$315,000.
• C)$435,000.
• D)$465,000.

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Definitions:

Temperaments

Inherent personality traits and tendencies that significantly influence individuals' behaviors and interactions from an early age.

Physical Characteristics

Observable attributes of an object or an individual, including shape, size, color, and arrangement.

Epigenesis

Mechanism that turns genes on or off and determines functions of body cells.

Monozygotic Twins

Identical twins formed from a single fertilized egg that splits into two, sharing virtually all their DNA.