JDR Company Purchased 40% of the Common Stock of YRK $\begin{array}{lr}2014 \text { net income } & \$ 290,000 \\\text { Dividends declared and paid during December, 2014 } & \$ 20,000\end{array}$

question 37

Multiple Choice

JDR Company purchased 40% of the common stock of YRK Corporation on January 1, 2014, for $2,000,000 as a long-term investment. The records of YRK Corporation showed the following on December 31, 2014: $\begin{array}{lr}2014 \text { net income } & \$ 290,000 \\\text { Dividends declared and paid during December, 2014 } & \$ 20,000\end{array}$ At what amount should JDR report the YRK investment on the December 31, 2014 balance sheet?

• A) $2,116,000.
• B) $2,000,000.
• C)$2,096,000.
• D)$2,108,000.

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Definitions:

Study Method

Techniques and strategies adopted by individuals to enhance their learning and retention of knowledge.

The Rat Is Always Right

A principle in behavioral psychology and animal studies asserting that the observed behavior of a rat (or other research subjects) in an experiment is the correct response given their understanding of the situation, highlighting the importance of considering the subject's perspective in experimental design.

Humility

The quality of having a modest or low view of one's importance, often leading to a respectful and considerate behavior towards others.

Scientific Attitude

A mindset characterized by curiosity, skepticism, and humility, alongside the methodical pursuit of knowledge.