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On January 1,2XX0, Cheap Camera Corp. paid $2,310,000 to acquire Worldwide Photo, Inc. Cheap Camera...

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Accounting

On January 1,2XX0, Cheap Camera Corp. paid $2,310,000 to acquire Worldwide Photo, Inc. Cheap Camera used the equity method to account for the investment. The following information is available for the assets, liabilities, and stockholders' equity accounts of Worldwide Photo:
Book Value Fair Value Current assets $660,000 $660,000 Land 285,000360,000 Building (twenty-year life)765,000930,000 Equipment (five-year life)555,000570,000 Current liabilities 120,000120,000 Long-term liabilities 195,000195,000 Common stock 420,000 Additional paid-in capital 900,000 Retained earnings 630,000
Worldwide Photo earned net income for 2XX0 of $375,000 and paid dividends of $54,000 during the year.
For 2XX0, what is the balance in Equity Income on Cheap Camera's books?
Select one:
a. $429,000
b. $363,750
c. $375,000
d. $386,250

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