Borgin inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to significantly influence the investee's operations and decision-making. On January , 2021, the balance in the investment in Burkes Co. account was $402.000. Amortization associated with the purchase of this investment is $8.000 per year During 2021, Burkes earned income of $108.000 and paid cash dividends of $36,000. Previously in 2020, Burkes had sold inventory costing $28.800 to Borgin for $48.000. All but 25% of this merchandise was consumed by Borgin during 2020. The remainder wos used during the first few weeks of 2021. Additional sales were made to Borgin in 202t, inventory costing $33,600 was transferred at a price of $60,000. Or this total, 40 was not consumed until 2022. What was the balance in the investment in Burkes Co. account at the end of 20217

Borgin inc. owns 30% of the outstanding voting common stock of Burkes Co. and has the ability to significantly influence the investee's operations and decision-making. On January , 2021, the balance in the investment in Burkes Co. account was $402.000. Amortization associated with the purchase of this investment is $8.000 per year During 2021, Burkes earned income of $108.000 and paid cash dividends of $36,000. Previously in 2020, Burkes had sold inventory costing $28.800 to Borgin for $48.000. All but 25% of this merchandise was consumed by Borgin during 2020. The remainder wos used during the first few weeks of 2021. Additional sales were made to Borgin in 202t, inventory costing $33,600 was transferred at a price of $60,000. Or this total, 40 was not consumed until 2022. What was the balance in the investment in Burkes Co. account at the end of 20217

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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