Canada bought 10% of the 200,000 common shares of Alberta Enterprises at a total cost of $13.00 per share on March 1st. On July 31st Alberta declared and paid a $75,000 cash dividend. On December 31st Alberta reported net income of $122,000 for the year and the market price of its shares was $15.00.

What is the balance in the Investment in Alberta Enterprises account on Canada's books at December 31st assuming Canada follows ASPE and accounts for Alberta using the cost method?

Question 2

	On January 1, 2020, Harold Hardware Company's allowance for uncollectible accounts had a credit balance of $6,000. Sales revenue for 2020 was $1,200,000, of which 80% was on credit. Historical data indicates that 3% of gross credit sales prove uncollectible. What should the balance in the allowance account for Harold be after the adjusting entry for uncollectible accounts is made?