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On January 1, 20X1, ABC Corp purchased 28.61% of the common shares of XYZ inc for $115,147. The investment is reported using the equity method,

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On January 1, 20X1, ABC Corp purchased 28.61% of the common shares of XYZ inc for $115,147. The investment is reported using the equity method, as ABC has significant influence over XYZ.XYZ reported net income and dividends of $57,574 and $23,023 respectively for the fiscal year 20X1. For the fiscal year 20X2, XYZ reported net income and dividends of $80,596 and $92,144 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. $118,685 O b. $127,815 Oc. $115,642 O d. $121,728 Oe. $124,771

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