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On January 1, 2021, ABC Corporation acquired 30% of the shares of XYZ Company. ABC paid $3,000 for the investment, and that amount is exactly
On January 1, 2021, ABC Corporation acquired 30% of the shares of XYZ Company. ABC paid $3,000 for the investment, and that amount is exactly equal to 30% of the book value of identifiable net assets on XYZ's balance sheet. XYZ recognized net income of $1,000 for 2021. ABC received $200 of dividends from XYZ. The fair value of the investment in XYZ Company at year end was $3,250.
Required: After all closing entries are made for the year ended December 31, 2021, ABC's "Investment in XYZ Company" account would have a balance of:
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