Solution:
Tremen's in Delany Company" account would have a balance of $ 3,080,000
Explanation:
Cost of Investment in Delany Company | $ 3,000,000 | |
Add: Net Income | $ 1,000,000 | |
Less: Dividends | $ (600,000) | |
Income After Dividends | $ 400,000 | |
Share of income after dividends for 6 Months | $ 80,000 | |
[$400,000*40%*6/12] | ||
Balance in Investment Account | $ 3,080,000 |
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