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A company pays $600,000 for 35% of the common stock of X, Inc. In the...

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Accounting

A company pays $600,000 for 35% of the common stock of X, Inc. In the first year, X, Inc. reports net income of $140,000 and pays a cash dividend of $65,000. The balance in Stock Investments-X, at year end under the equity method is:

Select one:

a. $626,700.

b. $622,500.

c. $626,750.

d. $675,000.

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