On January 2, 2011, Merton Co. acquired 30 percent of the outstanding voting common stock of Tilton, Inc., at a cost of $50,000. With this investment, Merton has the ability to exercise significant influence over Tilton, Inc. During 2011, Tilton, Inc. reported net income of $110,000 and paid total cash dividends of $35,000. What amount should be reported as investment and investment earnings by Merton for the year ending December 31, 2011? Show your work.

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The Answer of On January 2, 2011, Merton Co. acquired 30 percent of the outstanding voting common stock of Tilton, Inc., at a cost of $50,000. With this investment, Merton has the ability to exercise significant influence over Tilton, Inc. During 2011, Tilton, Inc. reported net income of $110,000 and paid total cash dividends of $35,000. What amount should be reported as investment and investment earnings by Merton for the year ending December 31, 2011? Show your work.