1. On January 1, 2019, Buffalo Trace purchased 18,000 common shares of Wild Turkey at $12 (cash) per share. The shares represent 20% ownership. The Wild Turkeys common stock has a readily determinable fair value. On January 1, 2019, the book value of the Wild Turkeys assets and liabilities equals $1,230,000 and $150,000, respectively. On that date, the appraised fair values of the Wild Turkeys identifiable net assets approximated the recorded book values. During the year ended December 31, 2019, Wild Turkey reported net income equal to $50,000 and dividends equal to $15,000. On December 31, 2019, the fair value of the Wild Turkeys stock is $16 per share.

Assume Buffalo Trace cannot exert significant influence over the Wild Turkey. Determine the balance in the Investment in Investee account on December 31, 2019.

1. $216,000
2. $223,000
3. $288,000
4. $295,000 Based on the information in Question 3 above, assume the investor can exert significant influence over the investee. Determine the balance in the Investment in Investee account on December 31, 2019.

1. $216,000
2. $223,000
3. $288,000
4. $295,000