On January 1, 2024, Kroll Corporation paid $2,954,000 for 34 percent of the outstanding voting stock of Sharon, Incorporated, and appropriately applied the equity method for its investment. Any excess of cost over Sharon's book value was attributed to an indefinite-lived asset. During 2024, Sharon reports $675,000 in net income and a $1,006,000 other comprehensive income loss. Sharon also declares and pays $20,000 in dividends. Required: a. What amount should Kroll report as its Investment in Sharon on its December 31, 2024, balance sheet? b. What amount should Kroll report as Equity in Earnings of Sharon on its 2024 income statement? a. Investment b. Equity in earnings

On January 1, 2024, Kroll Corporation paid $2,954,000 for 34 percent of the outstanding voting stock of Sharon, Incorporated, and appropriately applied the equity method for its investment. Any excess of cost over Sharon's book value was attributed to an indefinite-lived asset. During 2024, Sharon reports $675,000 in net income and a $1,006,000 other comprehensive income loss. Sharon also declares and pays $20,000 in dividends. Required: a. What amount should Kroll report as its Investment in Sharon on its December 31, 2024, balance sheet? b. What amount should Kroll report as Equity in Earnings of Sharon on its 2024 income statement? a. Investment b. Equity in earnings