send it to expert Problem $02-02($LO$2,3)$

PART A

On January $1,$ Year $5,$ Anderson Corporation paid $$576,000$ for $18,000(20\%)$ of the outstanding shares of Carter Inc. The investment

was considered to be one of significant influence. In Year $5,$ Carter reported profit of $$113,000$; in Year $6,$ its profit was $$123,000.$

Dividends paid were $$78,000$ in each of the two years.

Required:

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

Balance in Anderson's investment account

$

$467200$

PART B

Now assume that on December $31,$ Year $6,$ Anderson lost its ability to significantly influence the operating, investing, and financing

decisions for Carter when another party obtained sufficient shares in the open market to obtain control over Carter. Accordingly, the

investment in Carter was reclassified as a FVTPL investment. The fair value of the Carter shares was $$53$ per share on this date.