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Question: On January 1, Belleville Company paid $2,


On January 1, Belleville Company paid $2,295,000 to acquire 90,000 shares of O’Fallon’s voting common stock, which represents a 30 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 $1 per share dividend during the year and reported net income of $750,000. What is the balance in the Investment in O’Fallon account found in Belleville’s financial records as of December 31?
a. $2,295,000
b. $2,430,000
c. $2,520,000
d. $2,610,000

2.99

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