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Question:101 • Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During 2015, Taylor earns $1,200,000 and pays cash dividends of $1,000,000. • If the beginning balance in the investment account was $625,000. the balance at December 31, 2015, should be ⚫A. $1,025,000 ⚫ B. $825,000 • C. $705,000 • D. $625,000

Question:101 • Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During 2015, Taylor earns $1,200,000 and pays cash dividends of $1,000,000. • If the beginning balance in the investment account was $625,000. the balance at December 31, 2015, should be ⚫A. $1,025,000 ⚫ B. $825,000 • C. $705,000 • D. $625,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question:101 • Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During 2015, Taylor earns $1,200,000 and pays cash dividends of $1,000,000. • If the beginning balance in the investment account was $625,000. the balance at December 31, 2015, should be ⚫A. $1,025,000 ⚫ B. $825,000 • C. $705,000 • D. $625,000
Transcribed Image Text:Question:101 • Harrison Company owns 20,000 of the 50,000 outstanding shares of Taylor, Inc. common stock. During 2015, Taylor earns $1,200,000 and pays cash dividends of $1,000,000. • If the beginning balance in the investment account was $625,000. the balance at December 31, 2015, should be ⚫A. $1,025,000 ⚫ B. $825,000 • C. $705,000 • D. $625,000
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