On January 1, 2021, Goyeche Corporation purchased 30% of the common shares of Grafenburg Limited for $ 400,000. During 2021, Grafenburg Limited paid cash dividends of $ 60,000 and had profit of $ 300,000. During the same period, Goyeche earned $ 500,000 and paid dividends of $ 125,000. Both corporations have a December 31 year end. On December 31, 2021, the balance in Goyeche's Investment in Associate-Grafenburg Common Shares account is

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Goyeche's investment in Grafenburg is accounted for using the equity method. The initial investment is $400,000. Goyeche's share of Grafenburg's profit is 30% of $300,000, which is $90,000. Goyeche's share of the dividends paid by Grafenburg is 30% of $60,000, which is $18,000. The balance in the investment account is $400,000 + $90,000 - $18,000 = $472,000.

On January 1, 2021, Goyeche Corporation Purchased 30% of the Common