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Brown Corporation earns $600,000 and pays cash dividends of $200,000 during 2012. Dexter Corporation owns 3,000 of the 10,000 outstanding shares of Brown.

What amount should Dexter show in the investment account at December 31, 2012 if the beginning of the year balance in the account was $800,000?

a) $980,000.

b) $800,000.

c) $920,000.

d) $1,200,000.

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  • Reference No.:- M946158

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