On January 1, 2022, Valentine Corporation purchased 25% of the common stock outstanding of Betz Corporation for $200,000.During 2022, Betz Corporation reported net income of $80,000 and paid cash dividends of $48,000.The balance of the Stock Investments-Betz account on the books of Valentine Corporation at December 31, 2022, is

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The balance of the Stock Investments-Betz account on the books of Valentine Corporation at December 31, 2022, is $208,000. This is calculated as follows:Beginning balance: $200,000Add: Share of net income (25% x $80,000): $20,000Less: Share of dividends received (25% x $48,000): $12,000Ending balance: $208,000

On January 1, 2022, Valentine Corporation Purchased 25% of the Common