On January 1,20X8,Pullman Corporation Acquired 75 Percent Interest in Steamship

question 31

Multiple Choice

On January 1,20X8,Pullman Corporation acquired 75 percent interest in Steamship Company for $300,000.Steamship is a Norwegian company.The recording currency is the Norwegian kroner (NKr) .The acquisition resulted in an excess of cost-over-book value of $25,000 due solely to a patent having a remaining life of 5 years.Pullman uses the fully adjusted equity method to account for its investment.Steamship's December 31,20X8,trial balance has been translated into U.S.dollars,requiring a translation adjustment debit of $8,000.Steamship's net income translated into U.S.dollars is $35,000.It declared and paid an NKr 20,000 dividend on June 1,20X8.Relevant exchange rates are as follows:
Assume the kroner is the functional currency.
-Based on the preceding information,in the journal entry to record the receipt of dividend from Steamship,

• A)Investment in Steamship Company will be credited for $3,450.
• B)Cash will be debited for $3,300.
• C)Investment in Steamship Company will be credited for $4,000.
• D)Cash will be debited for $3,600.

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Definitions:

PET Scans

Imaging tests that allow doctors to check for diseases in the body by injecting a radioactive substance to show activity and function of tissues and organs.

Sympathetic System

Part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body for rapid action in response to a perceived threat.

Parasympathetic System

controls homeostasis and the body at rest and is responsible for the body's "rest and digest" response.

CNS

The central nervous system, comprising the brain and spinal cord, responsible for integrating sensory information and responding accordingly.