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Motlow Corp. purchased 35% the voting shares of Lancaster stock on January 1 for a total cost of $800,000. Altogether, 200,000 shares were purchased. During the year, Lancaster paid dividends of $20,000 an reported earnings (net income) per share of $0.15. Lancaster stock was trading at $4.50 per share at year end. What final amount would Motlow report on its balance sheet for the Lancaster investment at the end of the year?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M92759224

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