On January 2, Matthews Corporation acquired 20% of the outstanding common stock of Dennehy Company for $450,000. For the year ended December 31, Dennehy reported net income of $90,000 and paid cash dividends of $30,000 on its common stock. On December 31, the carrying value of Matthews’ investment in Dennehy under the equity method is
A. $462,000. 

B. $444,000 

C. $456,000. 

D. $450,000.

Answer rating: 100% (QA)

Purchase price of investment 450000 Share in net income 90000 2... View the full answer