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Question - Blanco Company purchased 200 of the 1,000 outstanding shares of Darby Company's common stock for $600,000 on January 2, 2013. During 2013, Darby Company declared dividends of $100,000 and reported earnings for the year of $400,000.
If Blanco Company uses the equity method of accounting for its investment in Darby Company, find its Equity Investment (Darby) account at December 31, 2013?
a. $580,000.
b. $600,000.
c. $660,000.
d. $680,000.
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