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Ritchie Limited acquired 45% of Toy Company for $4,500,000 on January 1,2023 . The total fair value and book value of Toy's identifiable net assets
Ritchie Limited acquired 45% of Toy Company for $4,500,000 on January 1,2023 . The total fair value and book value of Toy's identifiable net assets was $10,000,000 on that date. During 2023 , Toy recognized net income of $1,650,000 and paid dividends of $2,310,000. Toy had a fair value of $10,500,000 as of December 31, 2023. Assuming Ritchie accounts for the Toy investment under the equity method, what balance will Ritchie report in its investment in equity affiliate account on December 31, 2023? [5 points] $6,150,000 $5,110,500 $10,500,000 $4,203,000 $2,932,500
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