Question

Alfa bought 30% of the Beta common stock on January 1, 2019 in the amount of...

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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