7. Receivables and Investments
Equity Method
Multiple Choice
Multiple ChoiceOn January 3, Johnson Corp acquired 35% of the outstanding common stock of Small Company for $350,000. For the year ended December 31, Small Company reported net income of $150,000 and paid cash dividends of $70,000 on its common stock. At December 31, the carrying value of Johnson Corp's investment in Small Company under the equity method is:
A
$322,000
B
$350,000
C
$378,000
D
$398,000
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