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    One company having stock in another, Earnings, Dividends paid

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    13. Kramer Company has a substantial investment in Benz Company. Kramer Company accounts for this investment using the equity method. Kramer Company owns 60% of the Benz Company's stock, which was purchased for $150,000 in January of 2004. Given the following information for the Benz Company, what is the balance in Kramer's investment in Benz Co. account on July1, 2007?

    December 31, 2004 Earnings $100,000
    December 31, 2005 Earnings $124,000
    July 1, 2006 Dividends Paid $20,000
    December 31, 2006 Earnings $136,000
    July 1, 2007 Dividends Paid $24,000

    Inventory Balance $ = ?

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    The expert examines one company having stock in another, earnings and dividends paid.

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