Problem related to closing entries

Reference no: EM13135301

On July 1, 2011, Tremen Corporation acquired 40% of the shares of Delany Company. Tremen paid $3,000,000 for the investment, and that amount is exactly equal to 40% of the fair value of identifiable net assets on Delany's balance sheet. Delany recognized net income of $1,000,000 for 2011, and paid $150,000 quarterly dividends to its shareholders. After all closing entries are made, Tremen's "Investment in Delany Company" account would have a balance of:

A. $3,200,000.

B. $3,160,000.

C. $3,000,000.

D. $3,080,000.

Reference no: EM13135301

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