What Is the Balance in the Investment in Stanley Corporation

question 38

Multiple Choice

What is the balance in the Investment in Stanley Corporation on December 31, 2018?

• A) $415,000.
• B) $512,500.
• C) $523,000.
• D) $539,500.
• E) $544,500.

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Definitions:

Voting Stock

Shares of a company that grant the holder the right to vote on company matters, such as electing the board of directors.

Equity Method

An accounting technique used when a company invests in another company and exercises significant influence over it, adjusting the value of the investment based on the investee's performance.

Cash Dividend

The disbursement of cash from a company's earnings to its shareholders, a decision made by the board of directors for a specific class of its investors.

Voting Common Stock

A class of stock that grants the shareholder voting rights in a corporation's decisions, typically one vote per share owned.