Answer:
Balance of Harrison's Investment in Puckett's Financial Records
= $2,905,000
Explanation:
To calculate the balance of Harrison's account in Puckett's financial records the following steps are applied.
Step 1: Calculate the percentage of reported Income that accruees to Harrsion in Puckett
=Reported Net Profit x Percent Investement of Harrison in Puckett
= $580,000 x 0.40= $232,000
Step 2: Calculate the Dividend Accrued to Harrison's Common Stok basd on the $3 dividend per share declared
= Total Number of Shares for Harrison x $3
=99,000 Shares x $3= $297,000
Final Step: Calcuate the balance of Harrision's Investment in Puckett
= Amount paid for 99,000 stock + Percentage of Reported Income Accrued to Harrison- Harrison's portion of Dividend declared
= $2,970,000 + $232,000- $297,000
= $2,905,000
