On January 1, 2022, Coastal Corp

question 110

Multiple Choice

On January 1, 2022, Coastal Corp.purchased 30% of the common shares of Mansbridge Corp.for $600,000.During 2022, Mansbridge Corp.reported net income of $75,000 and paid total cash dividends of $15,000.The balance in the Investment in Associates (Mansbridge) account on Coastal's books at December 31, 2022 is

• A)$675,000.
• B)$622,500.
• C)$618,000.
• D)$600,000.

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Definitions:

New Computer

A recent purchase or acquisition of a computing device for personal or business use.

Cash

Physical form of currency such as coins and banknotes; in accounting, cash also includes balances in bank accounts.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities.

Liabilities

Financial obligations or debts that a company owes to external parties or entities.