Explore BrainMass

Explore BrainMass

    Calculating Investment

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Patton Corporation owns 2,500 of the 10,000 outstanding shares of Forman Corporation. During 2013, Forman Corporation earns $1,500,000 and pays cash dividends of $120,000. What amount should Patton show in the investment account on December 31, 2013 if the beginning of the year balance in the account was $1,000,000?

    a. $1,000,000
    b. $1,345,000
    c. $1,375,000
    d. $1,405,000

    © BrainMass Inc. brainmass.com June 4, 2020, 3:06 am ad1c9bdddf

    Solution Summary

    This solution calculates the investment account for Patton Corporation, assuming the beginning balance was $1,000,000.