On January 1, Belleville Company paid $2,085,000 to acquire 69,500 shares of O'Fallon's voting common stock, which represents a 40 percent investment. No allocations to goodwill or other specific accounts were made. Significant influence over O'Fallon is achieved by this acquisition, and so Belleville applies the equity method. O'Fallon declared a $2 per share dividend during the year and reported net income of $617,000. What is the balance in the Investment in O'Fallon account found in Belleville's financial records as of December 31? Multiple Choice $2,192,800 ces $2,312,800. $2,252,800. $2,331,800. In January 2020, Domingo, Inc., acquired 20 percent of the outstanding common stock of Martes, Inc., for $739,000. This investment gave Domingo the ability to exercise significant influence over Martes, whose balance sheet on that date showed total assets of $4,043,000 with liabilities of $983,000. Any excess of cost over book value of the investment was attributed to a patent having a remaining useful life of 10 years. In 2020, Martes reported net income of $219,000. In 2021, Martes reported net income of $282,000. Dividends of $80,000 were declared in each of these two years. What is the equity method balance of Domingo's Investment in Martes, Inc., at December 31, 2021? Multiple Choice $807,200 $877,800. $781,800. O $890,500 Franklin purchases 40 percent of Johnson Company on January 1 for $573,500. Although Franklin did not use it, this acquisition gave Franklin the ability to apply significant influence to Johnson's operating and financing policies. Johnson reports assets on that date of $1,519,000 with liabilities of $530,000. One building with a seven-year remaining life is undervalued on Johnson's books by $204,750. Also, Johnson's book value for its trademark (10-year remaining life) is undervalued by $240,000. During the year, Johnson reports net income of $144,000 while declaring dividends of $80,000. What is the Investment in Johnson Company balance (equity method) in Franklin's financial records as of December 31? Multiple Choice $577,800. $635,400. $589,500. $599,100.