On January 1, 2011, Anderson Company purchased 40% of the - 12314

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5. On January 1, 2011, Anderson Company purchased 40% of the voting common stock of Barney Company for $2,000,000, which approximated book value. During 2011, Barney paid dividends of $30,000 and reported a net loss of $70,000.

What is the balance in the investment account on December 31, 2011?
(Points : 2)
        $1,900,000
        $1,960,000
        $2,000,000
        $2,016,000
        $2,028,000

Solution Description

5. On January 1, 2011, Anderson Company purchased 40% of the voting common stock of Barney Company for $2,000,000, which approximat