Use the Following Information to Solve the Following Questions

question 47

Multiple Choice

Use the following information to solve the following questions:
During calendar 2020, Davel Corp. reported net income of $ 45,000 and paid total cash dividends of $ 15,000. Ryan Inc. owns 2,250 of the 7,500 outstanding shares of Davel and exercises significant influence.
-What amount should Ryan show in the investment account at December 31, 2020 if the beginning of the year balance in the account was $ 60,000?

• A) $ 69,000
• B) $ 73,500
• C) $ 60,000
• D) $ 90,000

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Definitions:

Sole Proprietorships

A business structure owned and operated by one individual, where there is no legal distinction between the owner and the business entity.