On January 1,X Corporation purchased 80% of Y Corporation for $250,000.On May 20,Y Corporation declared total dividends of $30,000.At year-end Y Corporation reported profit of $150,000.The balance in X Corporation's Investment in Y Corporation account at December 31 should be

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X Corporation's Investment in Y Corporation account balance increases by its share of Y Corporation's profit and decreases by its share of dividends declared. X Corporation owns 80% of Y, so it's entitled to 80% of Y's $150,000 profit ($120,000) and must subtract 80% of the $30,000 dividends ($24,000). Starting with the initial investment of $250,000, add the $120,000, and subtract the $24,000 to get $346,000.

On January 1,X Corporation Purchased 80% of Y Corporation for $250,000.On