A company uses the equity method to account for its investment in a company. Ignore closing entries recorded on december 31 to close temporary accounts. The company ends its fiscal year on december 31 of each year. They amortizes the difference between fmv and bv over 40 year period. What is the investment balance on dec 31 yr 12? On december 31 yr 10, they bought 40% of common stock for 500,000. Total book value of company was 800,000 on this date. During yr 11 reported 60,000 of net income and paid its shareholders a total of 30000 of cash dividends. During yr 12 reported a net income of 10000 and paid its shareholders a total of 5000 of cash dividends