Use the Following Information to Answer the Question(s) Below

question 46

Multiple Choice

Use the following information to answer the question(s) below.

On January 1, 2013, Pansy Company acquired a 10% interest in Sunflower Corporation for $80,000 when Sunflower's stockholders' equity consisted of $400,000 capital stock and $100,000 retained earnings. Book values of Sunflower's net assets equaled their fair values on this date. Sunflower's net income and dividends for 2013 through 2015 were as follows:


-Assume that Pansy Incorporated used the cost method of accounting for its investment in Sunflower.The balance in the Investment in Sunflower account at December 31,2015 was

• A)$76,700.
• B)$80,000.
• C)$83,300.
• D)$95,000.

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Definitions:

Royal Colony

A type of colonial administration of the British Empire, governed directly by the Crown through a royal governor appointed by the monarch.

Tobacco

A plant that contains nicotine and is cultivated for its leaves, which are processed and used primarily for smoking in cigarettes, cigars, or pipes.

Survival And Prosperity

The capacity of individuals or groups to maintain their life and health while also achieving economic success and growth.

Tobacco Production

The cultivation and processing of tobacco plants for use in products like cigarettes, cigars, and snuff, a significant agricultural industry in certain countries.