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:

Frequencies

The number of times a particular data point appears in a set of data.

Nominal Variable

A variable used in statistics to label or categorize without a natural order or ranking.

Interval

A range of values between two points, often used in mathematics and statistics to denote a specific span of numbers.

Time-series Data

Data that consists of sequence of values or events obtained over successive times, often analyzed to understand trends, cycles, or predictions.