Question

Pomograte Corporation bought 75% of Sycamore Company's common stock, with a book value of $900,000, on January 2, 2011 for $750,000. The law firm of Dewey, Cheatam and Howe was paid $55,000 to facilitate the purchase. At what amount should Pomograte's Investment in Sycamore account be reported on January 2, 2011?

A) $675,000

B) $695,000

C) $750,000

D) $845,000

Answer

This answer is hidden. It contains 1 characters.