Answer: $4,688,250
Explanation:
Carrying value on Jan 1, 2021:
= Interest + share of net income Dec 31,2020
= 1,400,000 + (10% * 700,000)
= $1,470,000
Carrying value, June 2021:
= Carrying value + share of net income
= 1,470,000 + (10% * 500,000)
= $1,520,000
Carrying value, July 2021:
= Carrying value + Net stake purchased
= 1,520,000 + 3,040,000
= $4.560,000
Carrying value, December 2021
= Carrying value + share of net income - share of dividends
= 4,560,000 + (30% * 815,000) - (1.55 * (25,000 + 50,000 shares))
= $4,688,250
