The Master Company Acquired a 40% Interest in the Dickerson

question 53

Multiple Choice

The Master Company acquired a 40% interest in the Dickerson Company on January 2, 2017, for $1,000,000. During 2017, Dickerson Company paid $100,000 in dividends and reported net income of $270,000. At the end of 2017, the balance in Investment in Dickerson Company should be

• A) $1,000,000.
• B) $1,068,000.
• C) $1,040,000.
• D) $1,108,000.

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