Tracy Company owns 4,000 of the 10,000 outstanding shares of Penn Corporation common stock. During 2015, Penn earns $300,000 and pays cash dividends of $100,000.
If the beginning balance in the investment account was $600,000, the balance at December 31, 2015 should be
a. $600,000.
b. $680,000.
c. $720,000.
d. $800,000.
Tracy should report investment revenue for 2015 of
a. $40,000.
b. $80,000.
c. $100,000.
d. $120,000.