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    Balance of Investment Account

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    On January 1, 2003, Bangle Company purchased 30% of the voting common stock of Sleat Corp. for $1,000,000. Any excess of cost over book value was assigned to goodwill. During 2003, Sleat paid dividends of $24,000 and reported a net loss of $140,000. What is the balance in the investment account on December 31, 2003?
    A) $950,800
    B) $945,800
    C) $939,300
    D) $990,100
    E) $956,400

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    Solution Preview

    Balance in the investment Account on Dec 31 2007 would be (A) $950800.The reason for this worked out balance is that under Equity method (Where investor owns atleast 20% of shares of a corporation) the investor acquires significant influence over the investee's financial and ...

    Solution Summary

    The solution shows a balance of investment accounts.