Problemon january 3 2013 roberts company purchased 30 of, Ask an Expert

Accounting

Problem:

On January 3, 2013, Roberts Company purchased 30% of the 100,000 shares of common stock of Thomas Corporation, paying $1,500,000. There was no goodwill or other cost allocation associated with the investment. Roberts has significant influence over Thomas. During 2013, Thomas reported income of $300,000 and paid dividends of $100,000. On January 4, 2014, Roberts sold 15,000 shares for $800,000.

Required:

Question: What is the balance in the investment account after the sale of the 15,000 shares?

$750,000.
$760,000.
$780,000.
$790,000.
$800,000.

Note: Provide support for your rationale.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165746

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