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Caraway Corporation earns $120,000 and pays cash dividends of $40,000 during 2011.Macoon Corporation owns 3,000 of the 10,000 outstanding shares of Caraway and exercises significant influence.
-Dielman Co.acquired a 60% interest in Simpson Corp.on December 31, 2011 for $315,000.During 2012, Simpson had net income of $200,000 and paid cash dividends of
$50,000.Assuming Dielman used the equity method, at December 31, 2012, the balance in the investment account should be

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Caraway Corporation earns $120,000 and pays cash dividends of $40,000 during 2011.Macoon Corporation owns 3,000 of the 10,000 outstanding shares of Caraway and exercises significant influence.
-Dielman Co.acquired a 60% interest in Simpson Corp.on December 31, 2011 for $315,000.During 2012, Simpson had net income of $200,000 and paid cash dividends of
$50,000.Assuming Dielman used the equity method, at December 31, 2012, the balance in the investment account should be

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