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. Parent Co. purchased 80% of the common shares of Sub Co. on January 1, Year 5 for $450,000. There were no differences between fair
. Parent Co. purchased 80% of the common shares of Sub Co. on January 1, Year 5 for $450,000. There were no differences between fair value and book value of Subs net assets on this day. In Year 5, Subs reported net income was $160,000, Sub paid dividends of $60,000 and there was a goodwill impairment loss of $10,000 in Year 5. What is the balance in the Investment in Sub account on December 31, Year 5 assuming the Parent uses the equity method? 1) $520,000 2) $597,200 3) $530,000 4) $568,000
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