On January 1, 2017, Puma Corporation Acquired 30 Percent of Slume

question 4

Multiple Choice

On January 1, 2017, Puma Corporation acquired 30 percent of Slume Company's stock for $150,000. On the acquisition date, Slume reported net assets of $450,000 valued at historical cost and $500,000 stated at fair value. The difference was due to the increased value of buildings with a remaining life of 10 years. During 2017 Slume reported net income of $25,000 and paid dividends of $10,000. Puma uses the equity method. What will be the balance in the Investment account as of Dec 31, 2017?

• A) $150,000
• B) $157,500
• C) $154,500
• D) $153,000

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Definitions:

Precambrian Granite

A type of coarse-grained igneous rock primarily composed of quartz and feldspar, formed during the Precambrian era, over 541 million years ago.

Geology Of Wyoming

The study of the physical nature, structure, and history of rocks and geographical processes shaping Wyoming's landscape.

Volcanic Field

A region that contains an abundance of volcanic rocks and perhaps preserved volcanoes.

Sedimentary Deposits

Layers of minerals and organic particles deposited by water, wind, or ice, often forming rocks through compaction and cementation over time.