On January 1, 2010, Jumper Co. acquired all of the common stock of Cable Corp. for $540,000. Annual amortization associated with the purchase amounted to $1,800. During 2010, Cable earned net income of $54,000 and paid dividends of $24,000. Cable's net income and dividends for 2011 were $86,000 and $24,000 respectively.
Assuming that Jumper decided to use the partial equity method, prepare a schedule to show the balance in the investment account at the end of 2011.
Your tutorial is attached showing a T account of the investment in indicating how the net income and dividends were handled with instructional notes.