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Reading 21:Intercorporate Investments LOS b ~ Q22

Q22. Company X owns 15% of company S and exerts significant control over the operations of the company. The book

value of the investment on December 31, 2001, is $48,000. In 2002, company S earned $100,000 and paid

dividends of $20,000. The value of the investment account on December 31, 2002, is:

A)   $63,000.

B)   $48,000.

C)   $60,000.

c

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[em50]

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a

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[em53]

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