Agee Corp acquired a 25 interest in Trent Co on January 1, 2010, for $500,000 At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding During 2010, Trent paid cash dividends of $160,000 and thereafter declared and issued a 5 common stock dividend when the market va...

Agee Corp. acquired a 25% interest in Trent Co. on January 1, 2010, for $500,000. At that

Question:

Agee Corp. acquired a 25% interest in Trent Co. on January 1, 2010, for $500,000. At that time, Trent had 1,000,000 shares of its $1 par issued and outstanding. During 2010, Trent paid cash dividends of $160,000 and thereafter declared and issued a 5% when the market value was $2 per share. Trent's net income for 2010 was $360,000. What is the balance in Agee's investment account at the end of 2010?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...