Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. 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 $170,000 and thereafter declared and issued 5% common stock dividend when the fair value was $2 per share. Trent's net income for 2018 was $356,000. How doI calculate the balance in Agee's equity investment account at the end of 2018?

Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. 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 $170,000 and thereafter declared and issued 5% common stock dividend when the fair value was $2 per share. Trent's net income for 2018 was $356,000. How doI calculate the balance in Agee's equity investment account at the end of 2018?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter16: Retained Earnings And Earnings Per Share

Section: Chapter Questions

Problem 8MC: Hyde Corporations capital structure at December 31, 2018, was as follows: On July 2, 2019, Hyde...

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