Question
In: Accounting
Agee Corporation acquired a 35% interest in Trent Company on January 1, 2018, for $500,000. At...
Agee Corporation acquired a 35% interest in Trent Company on January 1, 2018, for $500,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2018, Trent paid cash dividends of $168,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Trent's net income for 2018 was $360,000. What is the balance in Agee's equity investment account at the end of 2018? Balance in equity investment account
Solutions
Expert Solution
Answer:-The balance in Agee's equity investment account at the end of 2018 is :-$567200
Explanation:-
Cost $500000
Add:- Share of net income (.35 × $360000) $126000
Less:-Share of dividends (.35 × $168000) $(58800)
Balance in equity investment account$ $567200
ekkarill92 answered 1 year agoRelated Solutions
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