Doug, Inc.used the equity method of accounting for its investment in Russ Company.At December 31, 2010, the investment balance was $4, 500 after all adjustments were recorded.The following is additional information: $\begin{array}{ll}
\text { Doug's share of Russ' } 2010 \text { net income } & \$ 2,300 \
\text { Doug's share of } 2010 \text { depreciation of Russ equipment } & 100 \
\text { Doug's dividends received from Russ in } 2010 & 700
\end{array}$
What was the January 1, 2010 balance in Investment in Russ Company?

Question

Doug, Inc.used the equity method of accounting for its investment in Russ Company.At December 31, 2010, the investment balance was $4, 500 after all adjustments were recorded.The following is additional information: $\begin{array}{ll}
\text { Doug's share of Russ' } 2010 \text { net income } & \$ 2,300 \
\text { Doug's share of } 2010 \text { depreciation of Russ equipment } & 100 \
\text { Doug's dividends received from Russ in } 2010 & 700
\end{array}$
 What was the January 1, 2010 balance in Investment in Russ Company?

Quizplus · Accepted Answer

The Answer of Doug, Inc.used the equity method of accounting for its investment in Russ Company.At December 31, 2010, the investment balance was $4, 500 after all adjustments were recorded.The following is additional information: $\begin{array}{ll}
\text { Doug's share of Russ' } 2010 \text { net income } & \$ 2,300 \
\text { Doug's share of } 2010 \text { depreciation of Russ equipment } & 100 \
\text { Doug's dividends received from Russ in } 2010 & 700
\end{array}$
 What was the January 1, 2010 balance in Investment in Russ Company?

Doug, Incused the Equity Method of Accounting for Its Investment in in Russ