PART A

On January 1, Year 5, Anderson Corporation paid $592,000 for 18,500 (20%) of the outstanding shares of Carter Inc. The investment was considered to be one of significant influence. In Year 5, Carter reported profit of $106,000; in Year 6, its profit was $116,000. Dividends paid were $71,000 in each of the two years.

Required:

Calculate the balance in Andersons investment account as at December 31, Year 6. (Omit $ sign in your response.)

Balance in Andersons investment account $