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Pone Company purchased 100 percent of Sone Inc. on January 1, 20X9 for earnings of $625,000. Sone reported earnings of $76,000 and declared dividends of $8,000 during 20X9. Assuming Pone uses the cost method to account for its investment in Sone, what is the balance in Pone's Investment in Sone account on December 31, 20X9, prior to consolidation?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92797099

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