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On January 1, 2011 Sun Co. purchased 40% of Moon Co. for $500,000 in cash. In 2011 Moon Co. earned $75,000 in Income and paid
On January 1, 2011 Sun Co. purchased 40% of Moon Co. for $500,000 in cash. In 2011 Moon Co. earned $75,000 in Income and paid $20,000 in dividends. In 2012 Moon earned $150,000 in income and paid $30,000 in dividends. Amortization per year was $5,000. What is the balance in the investment account on December 31, 2012 and show journal entries. Assume equity method of accounting. Please show all work:
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