Alfa bought 30% of the Beta common stock on January 1, 2019 in
the amount of $ 300,000. The fair value and book value of Beta's
net assets at that date were $ 1,000,000 and $ 900,000,
respectively. The difference between the two values is due to
equipment whose market value exceeds that of books by $ 60,000 and
which depreciates in three years. The remainder of this difference
is due to goodwill.
On May 19, 2019, Beta published 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
cash dividend in the amount of $ 50,000. What is the balance that
the investment account must reflect in Alfa's books, once Alfa has
accounted for the information reported by Beta?
Seleccione una:
a. $356,667
b. $313,500
c. $343,500
d. $371,667
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