Answer:
$420,000
Explanation:
Given the above information,
Dividend
= $75,000 × 40%
= $30,000
Share in income
= $375,000 × 40%
= $150,000
Balance in investment account
= Beginning balance + Share in income - Dividend
= $300,000 + $150,000 - $30,000
= $420,000
Therefore, the balance in Madison's equity method investments - Jay Corporation accounts as of December 31 should be $420,000
Answer:
$27,333.33
Explanation:
The computation of the amount of income reported is shown below:
= Provided services to the customer + Payment received × number of months ÷ given number of months
= $25,000 + $12,000 × 7 months ÷ 36 months
= $25,000 + $2,333.33
= $27,333.33
The seven months is calculated from the June 1 to December 31. We assume the books are closed on December 31
