What the balance in the investment in nest account

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Question - On January 1, 2006, Finch Corporation owned a 90% interest in Nest Corporation at which time the Investment in Nest account had a balance of $350,000, which was 90% of Nest's $370,000 in stockholders' equity and $17,000 of goodwill. During 2006, Nest had income of $35,000 and paid dividends of $3,000 on June 1 and another $3,000 on November 1. On May 1, 2006, Finch sold one-fifth of its interest in Nest for $92,000. If the "beginning-of-the-period" sales assumption is used, what the balance in the Investment in Nest account on December 31, 2006?

a. $300,300.

b. $300,880.

c. $304,480.

d. $306,100.

Reference no: EM133014397

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