Answer:
C. $22,672
B. $413,872
Explanation:
a. The computation of Amount realized by Ticker is shown below:-
Unrealized profit = (48,000 - $28,800) × 25% × 30%
= $19,200 × 25% × 30%
= $1,440
Unrealized profit from Additional sales = ($60,000 - $33,600) × 40% × 30%
= $26,400 × 40% × 30%
= $3,168
Ownership Interest = (Earned income × Outstanding percentage) + Unrealized profit - (Investment + Unrealized profit from Additional sales)
= (108,000 × 30%) + $1,440 - ($8,000 + $3,618)
= $32,400 + $1,440 - $11,618
= $22,672
b. The computation of balance in the Investment is given below:-
Balance of investment = Investment + Interest - Dividend
= $402,000 + $22,672 - ($36,000 × 30)
= $402,000 + $22,672 - $10,800
= $413,872
