Answer:
$4,465,400
Explanation:
The investment in Elton in 2020 $1,300,000
share of 2020 net income(10%*$690,000) <u>$69,000</u>
ending balance of investment in 2020 $1,369,000
Share of net income 6/30/21 ($480,000*10%) <u> $48,000</u>
ending balance of investment 6/30/21 $1,417,000
Acquisition of investment 7/1/2021 <u> $2,920,000</u>
Total amount of investment $4,337,000
share of net income 12/31/2021($800,000*30%) $240,000
Dividends received(48,000+24,000)*$1.55 <u>($111,600)</u>
balance of investment in Elton John Corp <u> $4,465,400</u>
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In computing the above value,at each point in time the share of Blue Co from net income earned by Elton john corp is added while any dividends received in cash is deducted.
