If Nolte Company Acquired a 30% Interest in Boswell Company

question 51

Multiple Choice

If Nolte Company acquired a 30% interest in Boswell Company on December 31, 2011 for $67,500 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)$72,000.
• B)$67,500.
• C)$75,000.
• D)$72,500.

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Definitions:

Complex Conjugate

The pair of a complex number, changing the sign of its imaginary part.

Simplify

Making a complex numerical or algebraic expression easier to handle by reducing it to a more basic form.

Square Root Property

A mathematical rule stating that if \(x^2 = a\), then \(x = \pm\sqrt{a}\), which is used to solve quadratic equations.

Equation

A mathematical statement that asserts the equality of two expressions, typically written in the form \(A = B\), where \(A\) and \(B\) are expressions.