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How much did Cullumber pay for its interest in Ace

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Question - On January 1, 2021, Cullumber Company purchased 20% of Ace Corporation's common stock; no goodwill resulted from the purchase. Cullumber appropriately carries this investment at equity and the balance in Cullumber's investment account was $1410000 at December 31, 2021. Ace reported net income of $820000 for the year ended December 31, 2021, and paid cash dividends on common stock totaling $340000 during 2021. How much did Cullumber pay for its 20% interest in Ace?

a. $1506000.

b. $1314000.

c. $1642000.

d. $1478000.

Reference no: EM132723771

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