4110.3

Public Corporation acquired 90 percent of Station Company's voting common stock on January 1, 20X1, for $507,600. At the time of the combination, Station reported common stock outstanding of $126,000 and retained earnings of $388,000, and the fair value of the noncontrolling interest was $56,400. The book value of Station's net assets approximated market value except for patents that had a market value of $50,000 more than their book value. The patents had a remaining economic life of five years at the date of the business combination. Station reported net income of $70,000 and paid dividends of $21,000 during 20X1 Required: a. What balance did Public report as its investment in Station at December 31, 20X1, assuming Public uses the equity method in accounting for its investment? Balance in investment account