On March 31, 2021, Pyramid Company acquired 40% of the shares of Casting Company. Pyramid paid $3,000,000
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Question:
On March 31, 2021, Pyramid Company acquired 40% of the shares of Casting Company. Pyramid paid $3,000,000 for the investment, and that amount is exactly equal to 40% of the book value of identifiable net assets on Casting's balance sheet. Casting recognized net income of $1,000,000 and paid $600,000 of dividends for 2021. After all closing entries are made for the year ended December 31, 2021, Pyramid’s "Investment in Casting Company" account would have a balance of:
a. $3,120,000
b. $3,200,000
c. $3,080,000
d. $3,000,000
e. $3,160,000
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