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Test: CPA Financial Accounting and Reporting (FAR)
1. | Carmen, Inc purchased 15% of Loman's 60,000 outstanding shares of common stock on January 1, Year 2, for $80,000. On December 31, Year 2, Carmen purchased an additional 12,000 shares of common stock for $150,000. Loman reported $75,000 in earnings for Year 2. There was no goodwill as a result of either transaction, and Loman didn't issue any additional shares of stock in Year 2. There was no unrealized holding gain or loss reported in other comprehensive income for this investment. What amount should Carmen report in its investment account at the end of Year 2? |
$258,000
$230,000
$310,000
$242,000
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