On January 2, 2018 Pod Company purchased 25% of the outstanding common stock of Jobs, Inc. and subsequently used the equity method to account for the investment. During 2015 Jobs, Inc. reported net income of $840,000 and distributed dividends of $360,000. The ending balance in the Investment in Pod Company account at December 31, 2015 was $640,000 after applying the equity method during 2015. What was the purchase price Pod Company paid for its investment in Jobs, Inc?

Select one:

A. $510,000

B. $1,410,000

C. $780,000

D. $1,140,000

E. $770,000

Answer rating: 100% (QA)

1 Answer e 770000 Note Purchase price of investment Net Income after ... View the full answer