Multiple Choice

A. Option A

B. Option B

C. Option C

D. Option D

On January 1, 20X1, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of $120,000. Excess cost attributable to inventory is written off in 201. During 201, Lite Company earned $200,000 and declared a dividend of $40,000 for the year. The fair value of the Lite stock investment at the end of 201 was $210,000. Which of the following amounts are correct assuming that Como elected to use the fair value option to account for the Lite investment