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Bramble Corporation acquired a 37% interest in Vaughn Company on January 1, 2021, for $490,000. At...

Bramble Corporation acquired a 37% interest in Vaughn Company on January 1, 2021, for $490,000. At that time, Vaughn had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2021, Vaughn paid cash dividends of $165,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Vaughn's net income for 2021 was $355,000. What is the balance in Bramble 's equity investment account at the end of 2021?

Balance in equity investment account $

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Balance in Equity investment at the end of 2021
Initial investment $                     490,000
Net income (355000*37%) $                     131,350
Less: Cash dividend (165000*37%) -$                       61,050
Less: Stock dividend (1000000*5%*37%*2) -$                       37,000
Equity investment at the end of 2021 $                     523,300

ekkarill92 answered 1 year ago
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