Question
PLEASE pay attention to the question because the last answer I got for this question was for a completely different question. Jans Inc. acquired all
PLEASE pay attention to the question because the last answer I got for this question was for a completely different question.
Jans Inc. acquired all of the outstanding common stock of Tysk Corp. on January 1, 2016, for $372,000. Equipment with a ten-year life was undervalued on Tysk's financial records by $46,000. Tysk also owned an unrecorded customer list with an assessed fair value of $67,000 and an estimated remaining life of five years.
Tysk earned reported net income of $180,000 in 2016 and $216,000 in 2017. Dividends of $70,000 were paid in each of these two years. Selected account balances as of December 31, 2018, for the two companies follow.
Revenue Jans = $1,080,000 Tysk = $840,000
Expense Jans = $480,000 Tysk = $600,000
Retained Earnings, 1/1/18 Jans = $840,000 Tysk = $600,000
Dividends Paid Jans = $132,000 Tysk = $70,000
If the equity method had been applied, what would be the Investment in Tysk Corp. account balance within the records of Jans at the end of 2018?
MULTIPLE CHOICE OPTIONS:
-$612,100
-$744,000
-$774,150
-$372,000
$844,100
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