Homework Answers
Investment in Marry Co. balance: $ 286,000
Workings : Applying the equity method, income from Marry Co. should be added each year, and dividends and amortization expense to be deducted. Hence book value of investment = $ 257,000 + $ 40,000 - $ 10,000 - $ 19,000 + $ 47,000 - $ 10,000 - $ 19,000 = $ 286,000
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