On January 1,2014,Amber Inc

question 18

Multiple Choice

On January 1,2014,Amber Inc.purchased 30 percent of the outstanding common stock of Collar Corporation for $516,000 cash.Amber is accounting for this investment using the equity method.On the date of acquisition,the fair value of Collar' net assets was $1,240,000.Amber has determined that the excess of the cost of the investment over its share of Collar' net assets is attributable to goodwill.Collar' net income for the year ended December 31,2014,was $360,000.During 2014,Collar declared and paid cash dividends of $40,000.There were no other transactions between the two companies.On December 31,2014,the investment in Collar should be recorded as

• A) $396,000.
• B) $468,000.
• C) $612,000.
• D) $624,000.

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Definitions:

Archaeplastids

A group in the eukaryotic tree of life that includes red algae, green algae, and land plants, characterized by the presence of plastids with a double membrane.

Antheridium

(pl., antheridia) In plants, the multicellular male gametangium (sex organ) that produces sperm cells. Compare with archegonium.

Archegonium

A female reproductive structure found in ferns, mosses, and some conifers and flowering plants, producing a single egg cell for fertilization.

Sporangium

A spore case, found in plants, certain protists, and fungi.