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On January 1,20X5, Park Company purchased 10 percent of Sky, Incorporated's outstanding common shares largest...

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Accounting

On January 1,20X5, Park Company purchased 10 percent of Sky, Incorporated's outstanding common shares largest single shareholder in Sky, and Park's officers are a majority on Sky's board of directors. As a result, Park is able to exercise significant influence over Sky. Sky reported net income of $500,000 for 20x5, and paid dividends of $150,000. In its December 31,20x5, balance sheet, what amount should Park report as investment in Sky?
A) $385,000
B) $450,000
C) $400,000
D) $435,000
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