Question
On January 1, 2022, Maria, Inc. paid $2,400,000 in exchange for 100% of the voting shares of Sandro, Inc. During 2022, Sandro reported a net
On January 1, 2022, Maria, Inc. paid $2,400,000 in exchange for 100% of the voting shares of Sandro, Inc.
During 2022, Sandro reported a net income of $432,000 and paid $120,000 in dividends during the year.
During 2022, Maria reported a net income of $3,180,000 not including investment income in Sandro, and paid $900,000 in dividends during the year.
During 2022, Maria sold a piece of land to Sandro which resulted in a profit of $24,000.
Sandro continues to use the land in his operations.
REQUIRED: What is the amount of the investment account in Sandro that Maria must report in her individual Balance Sheet before the consolidation of the financial statements?
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