REFERENCE: Ref.03_01 On January 1,2009,Cale Corp.paid $1,020,000 to Acquire Kaltop Co.Kaltop Maintained

question 39

Multiple Choice

REFERENCE: Ref.03_01
On January 1,2009,Cale Corp.paid $1,020,000 to acquire Kaltop Co.Kaltop maintained separate incorporation.Cale used the equity method to account for the investment.The following information is available for Kaltop's assets,liabilities,and stockholders' equity accounts:
SHAPE \* MERGEFORMAT
Kaltop earned net income for 2009 of $126,000 and paid dividends of $48,000 during the year.
-What is the balance in Cale's investment in subsidiary account at the end of 2009?

• A)$1,099,000.
• B)$1,020,000.
• C)$1,096,200.
• D)$1,098,000.
• E)$1,144,400.

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