On January 1, Puckett Company paid $1 6 million for 50,000 shares of Harrisons voting common stock, which represents a 40 percent investment No allocation to goodwill or other specific account was made Significant influence over Harrison is achieved by this acquisition and so Puckett applies the eq...

Acquisition price 1600000 Equity ...

On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrisons voting common stock, which

Question:

On January 1, Puckett Company paid $1.6 million for 50,000 shares of Harrison’s voting common stock, which represents a 40 percent investment. No allocation to or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a of $2 per share during the year and reported net income of $560,000. What is the balance in the Investment in Harrison account found in Puckett’s financial records as of December 31?
a. $1,724,000.
b. $1,784,000.
c. $1,844,000.
d. $1,884,000.

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