Blau Corporation invests $302,500 in Hills Corporation,buying 80 percent of the voting stock.Hills pays Blau $20,000 in cash dividends and earns a net income of $130,000 during 2013.On the consolidated balance sheet,the balance in the investments account representing Blau's interest in Hills will be

Question

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In a consolidated balance sheet, the investment account is eliminated, and the assets and liabilities of the subsidiary are combined with those of the parent company.

Blau Corporation Invests $302,500 in Hills Corporation,buying 80 Percent of the Voting