Alpha bought 30% of the Common Shares of Beta on 1
January 2019 for the amount of $300,000. The righteous
value and book value of net Beta assets in
that date was $1,000,000 and $900,000, respectively.
The difference between the two values is due to a
computer
whose market value exceeds that of books by $ 60,000 and
that depreciates in three years. The remnant of such
difference is due to Goodwill.
On May 19, 2019, Beta released the results of its
operations for the first quarter of the year (January to
March 2019) and these reflected a net income of
$200,000. On March 31 Beta declared a dividend on
cash in the amount of $50,000. : What is the balance
which must be reflected in the investment account in the books
of
Alpha, after Alpha has posted the information
reported by Beta?
Select a:
a. $356,667
b. $343,500
c. $313,500
d. $371,667