Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At that time, Blue had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2021, Blue paid cash dividends of $154,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Blue's net income for 2021 was $369,000. What is the balance in Kingbird's equity investment account at the end of 2021?
Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At that time, Blue had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2021, Blue paid cash dividends of $154,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Blue's net income for 2021 was $369,000. What is the balance in Kingbird's equity investment account at the end of 2021?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Kingbird Corporation acquired a 38% interest in Blue Company on January 1, 2021, for $480,000. At that time, Blue had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2021, Blue paid cash dividends of $154,000 and thereafter declared and issued a 5% common stock dividend when the fair value was $2 per share. Blue's net income for 2021 was $369,000. What is the balance in Kingbird's equity investment account at the end of 2021?
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