A. $111,250
B. $118,750
C. $100,000
On January 1, 2007, Yang Corporation acquired 25 % of the outstanding shares of Spiel Corporation
On
January 1, 2007, Yang Corporation acquired 25 % of the outstanding shares of
Spiel Corporation for $100,000 cash. Spiel Company reported net income of
$75,000 and paid dividends of $30,000 for both 2007 and 2008. The fair value of
shares held by Yang was $110,000 and $105,000 on December 31, 2007 and 2008,
respectively. What amount will be reported by Yang as balance in investment in
Spiel on December 31, 2008, if it used the equity method of accounting?
.
acc week