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On January 2, 2020, Manama Corporation paid $124,800 to acquire 15% of outstanding common stock of Hammon Co. Hammon earned net income of $96,000 in
On January 2, 2020, Manama Corporation paid $124,800 to acquire 15% of outstanding common stock of Hammon Co. Hammon earned net income of $96,000 in 2020 and paid dividends of $36,000. Manama Co. recognizes the increase in its 15% ownership in Hammon Co. at the end of 2020 and increases its investment account to $160,000. On January 1, 2021, Manama Co. purchases an additional 10% of Hammon for $108,000. Manama achieves the ability to exercise significant influence over Hammon Co. During 2021, Hammon earned $120,000 and paid $48,000 in dividends. On Manama's December 31, 2021 balance sheet, what balance was reported for the Investment in Hammon Co. account? $310,000. $336,000. $345,000. $336,400. $327,400
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