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:

Null Hypothesis

A default hypothesis that there is no significant difference or effect, serving as the assumption to be tested in a statistical analysis.

Outlier

An observation in a data set that is significantly distant from other observations, indicating a variance from normal behavior.

Median

The middle value in a data set, which divides the distribution into two equal parts, ensuring that half of the data points are below it and half are above.

Test Statistic

A statistic calculated from sample data that is used to assess the truth of a hypothesis in statistical testing.