Please read thoroughly.
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 $ = ?
Only answer if you understand this problem well enough to do so. Please show work. I would do this but I am running short on time as I have other work to do..... Thank you.© BrainMass Inc. brainmass.com March 21, 2019, 8:16 pm ad1c9bdddf
The expert examines one company having stock in another, earnings and dividends paid.