On January 1, Belleville Company paid $1,710,000 to acquire 57,000 shares of O'Fallon's voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $3 per share dividend during the year and reported net income of $590,000. What is the balance in the Investment in O'Fallon account found in Belleville's financial records as of December 31? Multiple Choice O о O O $1,946,000. $1,835,000. $1,895,000. $1,775,000.
On January 1, Belleville Company paid $1,710,000 to acquire 57,000 shares of O'Fallon's voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $3 per share dividend during the year and reported net income of $590,000. What is the balance in the Investment in O'Fallon account found in Belleville's financial records as of December 31? Multiple Choice O о O O $1,946,000. $1,835,000. $1,895,000. $1,775,000.
Chapter8: Consolidated Tax Returns
Section: Chapter Questions
Problem 36P
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![On January 1, Belleville Company paid $1,710,000 to acquire 57,000
shares of O'Fallon's voting common stock, which represents a 40
percent investment. No allocations to goodwill or other specific accounts
were made. Significant influence over O'Fallon is achieved by this
acquisition, and so Belleville applies the equity method. O'Fallon
declared a $3 per share dividend during the year and reported net
income of $590,000. What is the balance in the Investment in O'Fallon
account found in Belleville's financial records as of December 31?
Multiple Choice
O
O
O
O
$1,946,000.
$1,835,000.
$1,895,000.
$1,775,000.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1d02fe3e-85dc-4d00-b0ae-d5d4a686687a%2F0fff920a-2ba9-45ba-8856-325e6608a588%2Fnfppf8q_processed.jpeg&w=3840&q=75)
Transcribed Image Text:On January 1, Belleville Company paid $1,710,000 to acquire 57,000
shares of O'Fallon's voting common stock, which represents a 40
percent investment. No allocations to goodwill or other specific accounts
were made. Significant influence over O'Fallon is achieved by this
acquisition, and so Belleville applies the equity method. O'Fallon
declared a $3 per share dividend during the year and reported net
income of $590,000. What is the balance in the Investment in O'Fallon
account found in Belleville's financial records as of December 31?
Multiple Choice
O
O
O
O
$1,946,000.
$1,835,000.
$1,895,000.
$1,775,000.
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