Pell Company acquires $80\%$ of Demers

Company for $$500,000$ on January $1,2022.$

Demers reported common stock of $$300,000$

and retained earnings of $$210,000$ on that

date. Equipment was undervalued by

$$30,000$ and buildings were undervalued by

$$40,000,$ each having a $10-$year remaining

life. Any excess consideration transferred

over fair value was attributed to goodwill with

an indefinite life. Based on an annual review,

goodwill has not been impaired.

Demers earns income and pays dividends as

follows:

Assume the equity method is applied.

What is the consolidated balance of

the Investment in Demers account at

December $31,2024.$

Multiple Choice

$$639,000$

$$643,200$

$$763,200$

$$0$

$$620,000$