Ace Company owns 30% of the voting common stock of Becker Services, Inc. Ace uses the equity method to account for its investment. On January 1, year 1, the balance in the investment account was $624,000. During year 1, Becker Services reported a net income of $120,000 and paid dividends of $30,000. What is the balance in the investment account as of December 31, year 1?
Ace Company owns 30% of the voting common stock of Becker Services, Inc. Ace uses the equity method to account for its investment. On January 1, year 1, the balance in the investment account was $624,000. During year 1, Becker Services reported a net income of $120,000 and paid dividends of $30,000. What is the balance in the investment account as of December 31, year 1?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Ace Company owns 30% of the voting common stock of Becker Services,
Inc. Ace uses the equity method to account for its investment. On January
1, year 1, the balance in the investment account was $624,000. During year
1, Becker Services reported a net income of $120,000 and paid dividends of
$30,000. What is the balance in the investment account as of December 31,
year 1?
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