During January 2007,Wells,Inc

question 93

Multiple Choice

During January 2007,Wells,Inc.acquired 30% of the outstanding common stock of Wilton Co.for $1,400,000.This investment gave Wells the ability to exercise significant influence over Wilton.Wilton's assets on that date were recorded at $6,400,000 with liabilities of $3,000,000.Any excess of cost over book value of Wells' investment was attributed to unrecorded patents having a remaining useful life of ten years.
In 2007,Wilton reported net income of $600,000.For 2008,Wilton reported net income of $750,000.Dividends of $200,000 were paid in each of these two years.What was the reported balance of Wells' Investment in Wilson Co.at December 31,2008?

• A)$1,609,000.
• B)$1,485,000.
• C)$1,685,000.
• D)$1,647,000.
• E)$1,054,300.

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Definitions:

Obstructive Urination

Difficulty starting or maintaining a urine stream, often caused by an obstruction in the urinary tract.

Pelvic Heaviness

A feeling of pressure or fullness in the pelvic area, which can be a symptom of various conditions including pelvic organ prolapse.

Lower Back Pain

A common discomfort or ailment affecting the lower portion of the spine, which can be caused by a variety of factors including muscle or ligament strain, disk issues, or arthritis.

Vaginal Support

Refers to the muscular and structural support provided by the pelvic floor muscles to the vagina, essential for proper organ alignment and function.