Use the Following Information to Solve the Following Questions

question 8

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.
-On December 31, 2020, Ryan Corp. acquired a 40% interest in Gosling Corp. for $ 315,000. During 2021, Gosling reported net income of $ 200,000 and paid total cash dividends of $ 50,000. Assuming Ryan uses the equity method, at December 31, 2021, the balance in the investment account should be

• A) $ 395,000.
• B) $ 295,000.
• C) $ 375,000.
• D) $ 255,000.

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Definitions:

Legal Filing

The process of submitting documents to a court or official body to comply with legal requirements in a lawsuit or other legal proceedings.

Intellectual Property

Rights granted by law to safeguard intellectual property, including inventions, written and artistic pieces, patterns, and logos.

Significant Improvements

Refers to notable or considerable enhancements or upgrades in processes, products, or systems.

Federal Law

Legislation enacted by the national government that applies throughout the country.