If Nolte Company Acquired a 20% Interest in Boswell Company

question 79

Multiple Choice

If Nolte Company acquired a 20% interest in Boswell Company on December 31, 2011 for $45,000 and during 2012 Boswell Company had net income of $25,000 and paid a cash dividend of $10,000, applying the equity method would give a debit balance in the Investment in Boswell Company account at the end of 2012 of

• A)$37,000.
• B)$45,000.
• C)$48,000.
• D)$50,000.

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