Question

# On January 1, 2021, Bronson Co., a calendar-year entity, acquired 40% of Corbin Corp.’s common stock...

On January 1, 2021, Bronson Co., a calendar-year entity, acquired 40% of Corbin Corp.’s common stock for \$1 million. It did not elect the fair value option for the investment. The purchase price was equal to the carrying amount of 40% of Corbin's net assets, which approximated their fair value. Corbin's earnings and cash dividend payments for 2021 and 2022 were as follows:

2021

2022

Earnings

\$300,000

\$400,000

Dividends

\$90,000

\$120,000

On December 31, 2022, the balance in the investment account reported by Bronson should be

A. \$1,196,000

B. \$1,280,000

C. \$1,364,000

D. \$1,490,000

Detial working for your easy refrence

 Computation of balance of Investment Account' Investment made in Corbin \$1,000,000.00 Share in Earning of Corbin Company 2021 ( 300000*40%) \$120,000.00 2022 (400000*40%) \$160,000.00 Less: Share in Dividend 2021 (90000*40%) -\$36,000.00 2022 (120000*40%) -\$48,000.00 Balance in investment Account \$1,196,000.00
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