Barking Power Company Accounts for Its 35% Investment in Pipeline

question 55

Multiple Choice

Barking Power Company accounts for its 35% investment in Pipeline Corporation under the equity method of accounting.The investment was made on January 1,2017,at a cost of $625,000.Pipeline Corporation reported net income of $85,000 for the year ended December 31,2017,and paid total dividends of $20,000 during 2017.On December 31,2017,after making all appropriate entries,the balance in Barking Power Company's Long-Term Investment account will equal:

• A) $647,750
• B) $602,250
• C) $583,000
• D) $690,000

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Definitions:

Allegorical Figures

Symbolic representations in which characters or objects stand for abstract ideas, values, or concepts, frequently employed in literature and art.

Imperial Virtues

Moral and ethical qualities deemed essential for the rulers of an empire, often promoting leadership, courage, and wisdom.

Verism

An artistic style particularly used in Roman portraiture that emphasizes meticulous detail and strives for the accurate depiction of the subject's physical appearance.

Etruscan Funereal Sculpture

Sculptural works created by the Etruscans for tombs or funerary purposes, showcasing their beliefs in the afterlife and artistic skill.