medium · Financial Accounting liabilities-bonds-payable

An investor owns 30% of an investee's common stock and exerts significant influence. The investment was initially recorded at 300,000. During the year, the investee reports100,000 in Net Income and declares $40,000 in total dividends.

What is the carrying value of the investment at year-end under the equity method?

  1. $312,000
  2. $330,000
  3. $300,000
  4. $318,000

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