CPA MCQ Accounting Chapter 17 Brown Corporation earns $240,000 and pays cash dividends of $80,000 during 2010. 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, 2010 if the beginning of the year balance in the account was $320,000?

Brown Corporation earns $240,000 and pays cash dividends of $80,000 during 2010. 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, 2010 if the beginning of the year balance in the account was $320,000?

Accounting Chapter 17

Brown Corporation earns $240,000 and pays cash dividends of $80,000 during 2010. 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, 2010 if the beginning of the year balance in the account was $320,000?

a. $392,000.
b. $320,000.
c. $368,000.
d. $480,000.

Answer: C

CPA MCQ

Brown Corporation earns $240,000 and pays cash dividends of $80,000 during 2010. 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, 2010 if the beginning of the year balance in the account was $320,000?

Brown Corporation earns $240,000 and pays cash dividends of $80,000 during 2010. 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, 2010 if the beginning of the year balance in the account was $320,000?

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