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On January 1, 20X1, ABC Corp purchased 27.17% of the common shares of XYZ inc for $108,099. The investment is reported using the equity method,
On January 1, 20X1, ABC Corp purchased 27.17% of the common shares of XYZ inc for $108,099. The investment is reported using the equity method, as ABC has significant influence over XYZ XYZ reported net income and dividends of $54,050 and $21,615 respectively for the fiscal year 20X1. For the fiscal year 20X2, XYZ reported net income and dividends of $75,664 and $86,500 respectively. Calculate the balance of investment in XYZ account on ABC's balance sheet on December 31, 20x1 Assume both companies have a December 31 fiscal year end O a. $111,118 O b. $113,967 Oc$119,666 d. $116,817 e $122,515
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