On January 1, 2021, Bangle Company purchased 30% of the voting common stock of Sleat Corp. for $1,000,000. Any excess of cost over book value was assigned to goodwill. During 2021, Sleat paid dividends of $24,000 and reported a net loss of $140,000. What is the balance in the investment account on December 31, 2021?

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The correct answer is A.The investment account balance on December 31, 2021, is $950,800. This is calculated as follows:Initial investment: $1,000,000Share of Sleat's loss (30% x $140,000): $42,000Share of Sleat's dividends (30% x $24,000): $7,200Balance in investment account: $1,000,000 - $42,000 + $7,200 = $950,800

On January 1, 2021, Bangle Company Purchased 30% of the Voting