Answer:
The balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 was $2,071,500
Explanation:
In order to calcuate the balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 we would have to calculate the following formula:
Net balance=Investment made+share of net income-dividend
Investment made = $1,920,000
share of net income= $670,000*45%= $301,500
dividend= $2.5*60,000= $150,000
Therefore, Net balance= $1,920,000
+ $301,500
- $150,000
Net balance= $2,071,500
The balance in the Investment in Lennon Co.account found in the financial records of Pacer as of December 31, 2008 was $2,071,500
