CPA MCQ Accounting Chapter 17 Tracy Co. owns 4,000 of the 10,000 outstanding shares of Penn Corp. common stock. During 2010, Penn earns $120,000 and pays cash dividends of $40,000. If the beginning balance in the investment account was $240,000, the balance at December 31, 2010 should be

Tracy Co. owns 4,000 of the 10,000 outstanding shares of Penn Corp. common stock. During 2010, Penn earns $120,000 and pays cash dividends of $40,000. If the beginning balance in the investment account was $240,000, the balance at December 31, 2010 should be

Accounting Chapter 17

Tracy Co. owns 4,000 of the 10,000 outstanding shares of Penn Corp. common stock. During 2010, Penn earns $120,000 and pays cash dividends of $40,000.
If the beginning balance in the investment account was $240,000, the balance at December 31, 2010 should be

a. $240,000.
b. $272,000.
c. $288,000.
d. $320,000.

Answer: B

CPA MCQ

Tracy Co. owns 4,000 of the 10,000 outstanding shares of Penn Corp. common stock. During 2010, Penn earns $120,000 and pays cash dividends of $40,000. If the beginning balance in the investment account was $240,000, the balance at December 31, 2010 should be

Tracy Co. owns 4,000 of the 10,000 outstanding shares of Penn Corp. common stock. During 2010, Penn earns $120,000 and pays cash dividends of $40,000.If the beginning balance in the investment account was $240,000, the balance at December 31, 2010 should be

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Tracy Co. owns 4,000 of the 10,000 outstanding shares of Penn Corp. common stock. During 2010, Penn earns $120,000 and pays cash dividends of $40,000.
If the beginning balance in the investment account was $240,000, the balance at December 31, 2010 should be