On January 1,20X1,Belle Ltd

question 33

Multiple Choice

On January 1,20X1,Belle Ltd.purchased 100% of the common shares of Dominique Corporation for $700,000.Dominique's net income was $30,000 for 20X1 and $50,000 for 20X2.DA paid dividends of $20,000 on its common shares during 20X1 and $100,000 during 20X2.As such,total dividends paid by Dominique exceeded income earned by Dominique since it was acquired by Belle.What is the balance in the investment in Dominique's account at the end of 20X2 under the cost and equity methods?

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Definitions:

Pediatrics Department

A specialized medical department focused on the care, diagnosis, and treatment of infants, children, and adolescents.

Employee Hours

Employee hours track the amount of labor time worked by employees, used for payroll, scheduling, and operational efficiency analyses.

Square Feet

A unit of area measurement used primarily in the United States, equal to the area of a square with sides of one foot.

Direct Method

A method of preparing the cash flow statement where major classes of gross cash receipts and gross cash payments are disclosed, providing a clear view of cash flow from operating activities.