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    Accounting Problem for Agee Corporation

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    Agee Corporation acquired a 25% interest in Trent Co. on January 1, 2010, for $500,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2010, Trent paid cash dividends of $160,000, and thereafter declared and issued a 5% common stock dividend when the market value was $2 per share. Trent's net income for 2010 was $360,000. What is the balance in Agee's investment account at the end of 2010?

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    Solution Preview

    Therefore, the balance in the investment account is $550,000 (demonstrated ...

    Solution Summary

    The expert examines Agee Corporations for declared issues and common stocks.

    $2.49

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