Rutgers Inc. acquired all of the outstanding common stock of NJCU Co. on January 1,...
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Rutgers Inc. acquired all of the outstanding common stock of NJCU Co. on January 1, 2017, for $257,000. Annual amortization of $19,000 resulted from this acquisition. Rutgers reported net income of $70,000 in 2017 and $50,000 in 2018 and paid $22,000 in dividends each year. NJCU reported net income of $40,000 in 2017 and $47,000 in 2018 and paid $10,000 in dividends each year. What is the Investment in NJCU Co. balance on Rutgers books as of December 31, 2018, if the equity method has been applied?
A) $296,000. B) $286,000. C) $276,000. D) $344,000. E) $324,000.
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