Answer: $55,000
Explanation:
The question seems incomplete, but the complete question is stated below
Assume that on January 1, 2017, an investor company purchased 100% of the outstanding voting common stock of the investee. On the date of the acquisition, the investee’s identifiable net assets had fair values that approximated their historical book values. In addition, the acquisition resulted in no goodwill or bargain purchase gain recognized in the consolidated financial statements of the investor company. Assuming that the investor company uses the equity method to account for its investment in the investee, what is the balance in the "investment in investee" account in the investor company’s pre-consolidation balance sheet on December 31, 2019?
At December 31 2019 2018 2017
Current assets $285,000 $277,500 $207,000
Tangible fixed assets $662,500 $575,000 $563,000
Intangible assets 40,000 75,000 50,000
Total assets $987,500 $897,500 $820,000
Current liabilities $120,000 $110,000 $100,000
Noncurrent liabilities $266,250 $242,500 $220,000
Common stock $100,000 $100,000 $100,000
Additional paid-in capital $100,000 $100,000 $100,000
Retained earnings $400,000 $345,000 $300,000
Stock holders’ equity $600,000 $545,000 500,000
Total liabilities and equity $986,250 $897,500 $820,000
(For the year ended December 31) 2019 2018 2017
Revenues $970,000 $920,000 $850,000
Expenses $875,000 $840,000 $775,000
Net income $95,000 $80,000 $75,000
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Dividends $40,000 $35,000 $25,000
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