Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2018, Trent paid cash dividends of $170,000 and thereafter declared and issued 5% common stock dividend when the fair value was $2 per share. Trent's net income for 2018 was $356,000. How doI calculate the balance in Agee's equity investment account at the end of 2018?

Agee Corporation acquired a 30% interest in Trent Company on January 1, 2018 for $490,000. At that time, Trent had 1,000,000 shares of its $1 par common stock issued and outstanding. During 2018, Trent paid cash dividends of $170,000 and thereafter declared and issued 5% common stock dividend when the fair value was $2 per share. Trent's net income for 2018 was $356,000. How doI calculate the balance in Agee's equity investment account at the end of 2018?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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