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Time Company purchased 40,000 of the 100,000 outstanding shares of Tiny Company for $2,000,000. Time has significant influence over Tiny and will account for this
Time Company purchased 40,000 of the 100,000 outstanding shares of Tiny Company for $2,000,000. Time has significant influence over Tiny and will account for this investment using the equity method. During the year, Tiny declared dividends of $140,000 and reported Net Income of $800,000. What is the balance in the Investment in Tiny account at year-end?
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