REFERENCE: Ref.01_02 Starge Inc.owns 30% of the Outstanding Voting Common Stock of Stock

question 19

Multiple Choice

REFERENCE: Ref.01_02
Starge Inc.owns 30% of the outstanding voting common stock of Ticker Co.and has the ability to significantly influence the investee's operations and decision making.On January 1,2008,the balance in the Investment in Ticker Co.account was $402,000.Amortization associated with this acquisition is $8,000 per year.During 2008,Ticker earned an income of $108,000 and paid cash dividends of $36,000.Previously in 2007,Ticker had sold inventory costing $28,800 to Starge for $48,000.All but 25% of this merchandise was consumed by Starge during 2007.The remainder was used during the first few weeks of 2008.Additional sales were made to Starge in 2008;inventory costing $33,600 was transferred at a price of $60,000.Of this total,40% was not consumed until 2009.
-What was the balance in the Investment in Ticker Co.account at the end of 2008?

• A)$401,136.
• B)$413,872.
• C)$418,840.
• D)$412,432.
• E)$410,148.

---

Definitions:

Photographs

Visual representations captured by a camera that record images from the real world.

International Readers

Audiences from various countries around the world, often requiring considerations for cultural and linguistic differences.

Infographics

Visual representations of information, data, or knowledge meant to present information quickly and clearly.

Effective Guidelines

Principles or instructions that have been proven to lead to desired outcomes or successful results.