On January 1, 28, Jonsey Corporation purchased 30% of the common stock outstanding of Karsen Corporation for $2,0. During 28, Karsen Corporation reported net income of $80,0 and paid cash dividends of $40,0. The balance of the Stock Investments—Karsen account on the books of Jonsey Corporation at December 31, 28 is
A.$2,0
B.$240,0
C.$280,0
D.$212,0
1 Answer
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Stock Investments—Karsen account
Original investment $2,0
add 30% of Karsen’s net income $24,0
less 30% of Karsen’s dividends ($12,0)
Bal. at December 31, 28 = $212,0
D.$212,0