Question: help me please !!! answer it now Scott Company purchased 30% of the ownership of Earnest Enterprises on January 1, 20X2, at underlying book value.

help me please !!! answer it now Scott Company purchased 30%

help me please !!! answer it now

Scott Company purchased 30% of the ownership of Earnest Enterprises on January 1, 20X2, at underlying book value. In 20X2 Earnest reported net income $60,000 and paid dividends of $15,000 and in 20X3, it reported a loss of $40,000 and paid dividends of $35,000. Scott uses the equity method in accounting for its investment in Earnest and reported a balance in its investment account of $135,000 on December 31, 20X3. What is the amount of Scott's initial investment on January 1, 20X2? O a. $120,000 b. $126,000 O c. $144,000 d. $138,000 Clear my choice

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