What amount should pental investment in sedacor account

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Reference no: EM132931134

Problem 1: Pental Corporation bought 90% of Sedacor Company's common stock at its book value of $400,000 on January 1, 2014. During 2014, Sedacor reported net income of $120,000 and paid dividends of $40,000. At what amount should Pental's Investment in Sedacor account be reported on December 31, 2014?

A. $400,000
B. $472,000
C. $490,000
D. $530,000

Reference no: EM132931134

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