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In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $848,000. This investment gave Domingo the ability to
In January 2017, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $848,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $4.669,000 with liabilities of $989,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2017, Martes reported net incorme of $194.000. In 2018, Martes reported net income of $237,000. Dividends of S114,000 were declared in each of these two years. What is the equity method balance of Domingo's Investment in Martes, Inc., at December 31, 2018? Multiple Choice $866,200. $888,600 $1014,200 $1,003,000
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