Use the Following Information to Solve the Following Questions

Use the following information to solve the following questions:
Red Corp. owns 3,000 of the 10,000 outstanding common shares of Grey Corp. and exercises significant influence. During 2020, Grey reported net income of $ 120,000 and paid total cash dividends of $ 40,000.
-If the beginning 2020 balance in the Investment in Grey Corp. account was $ 180,000, the balance at December 31, 2020 should be

A) $ 260,000.
B) $ 204,000.
C) $ 180,000.
D) $ 132,000.

Correct Answer:

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