If Posthorn Corporation Accounts for Its Investment in Stamp Company

question 19

Multiple Choice

If Posthorn Corporation accounts for its investment in Stamp Company using the equity method, what will the balance in the Investment in Stamp Company be at December 31, 2016?

• A) $200,000
• B) $208,000
• C) $220,000
• D)$240,000

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Definitions:

Types Of Liens

Various legal claims or holds on property as security for the payment of a debt or obligation.

Consensual

Agreed upon by all parties involved; based on or involving mutual consent.

Statutory

Pertaining to laws passed by a legislative body; relates to statutes.

Judgment

A legal decision made by a court regarding the rights and liabilities of parties in a legal action or proceeding.