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On 1/1/19, Minion Company purchased 30% of Banana Company's common stock for $150,000. Banana's book value of equity at that date consisted of $100,000 common
On 1/1/19, Minion Company purchased 30% of Banana Company's common stock for $150,000. Banana's book value of equity at that date consisted of $100,000 common stock and $400,000 retained earnings. During 2019, Banana reported income of $100,000 and paid dividends of $30,000. The total fair value of Minion's investment in Banana stock on 12/31/19 is $190,000. Also during 2019, Banana sold inventory to Minion which originally cost Banana $150,000. Banana's price to Minion is based on 20% on mark up on cost. Minion has 25% of this inventory on hand at 12/31/19. Assuming that Minion is an important customer to Banana and that its ownership percentage allows membership on Banana's board of directors, answer the following questions (use the $XXX,XXX) format. Round to the nearest dollar. The total asset amount related to the Investment in Banana on Minion's 12/31/2019 balance sheet is The Banana investment increased Minion's net income in 2019 In 2020, Minion sold all of the remaining inventory from the Banana purchase. No additional purchases occurred in 2020. If Banana reported income of $90,000 in 2020, what is Minion's investment income for 2020
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