Pacer Company Purchased 300 of the 1,000 Outstanding Shares of Queen

question 33

Multiple Choice

Pacer Company purchased 300 of the 1,000 outstanding shares of Queen Company's common stock for $80,000 on January 2,2016.During 2017,Queen Company declared dividends of $8,000 and reported earnings for the year of $20,000. If Pacer Company uses the equity method of accounting for its investment in Queen Company,its Investment in Queen Company account at December 31,2017 should be

• A)$100,000
• B)$88,000
• C)$83,600
• D)$80,000

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