On January 1, 2008, Swanson Company buys 300,000 shares of Life Products Inc.'s common stock for $1,800,000, the book value of the shares. This purchase gave Swanson a 30% ownership interest in Life Products Inc. and the ability to exercise significant influence over decision making. During 2008, Life Products Inc. reported $500,000 in net income and paid a common stock dividend of $1.20 per share. What is the balance in Swanson's Investment in Life Products Inc. account at December 31, 2008?© BrainMass Inc. brainmass.com June 3, 2020, 11:34 pm ad1c9bdddf
The solution computes Balance of Swanson Company's Investment in Life Products Inc's account at year end.