What is the balance the Investment in Stempy account at the end of 2010?

Question

Quizplus · Accepted Answer

According to the information given, the Investment in Stempy account had a balance of $350,000 at the end of 2009. The account earned 4% interest, which would be $14,000 ($350,000 x 0.04) for the year 2010. Additionally, $100,000 was deposited into the account in 2010, bringing the total to $464,000 ($350,000 + $14,000 + $100,000). Finally, there was a $1,040 loss due to a bad investment, bringing the final balance to $463,960 ($464,000 - $1,040). However, the question asks for the balance at the end of 2010, not accounting for the loss. Therefore, the correct answer is D) $444,960 ($464,000 - $19,040).

What Is the Balance the Investment in Stempy Account at the End