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  3. pare, inc. purchased 10% of tot co.'s 100,000 outs

Pare, Inc. purchased 10% of Tot Co.'s 100,000 outstanding shares of common stock on January...

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Accounting

Pare, Inc. purchased 10% of Tot Co.'s 100,000 outstanding shares of common stock on January 2, Year 1, for $50,000. On December 31, Year 1, Pare purchased an additional 20,000 shares of Tot for $150,000. There was no goodwill as a result of either acquisition, and Tot had not issued any additional stock during Year 1. Stake did not give Pare, Inc. significant influence over the operating and financial policies of Tot Co. What amount should Pare report in its December 31, Year 1, Balance Sheet as investment in Tot?

$230,000

$170,000

$200,000

$290,000

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