Pine Inc. owns 25% of Tantramar Sand and Gravel and has significant influence over the company's operations. During the year, Tantramar had a net income of $ 240,000 and paid a dividend of $ 45,000. The balance on Pine's Balance Sheet for this investment would

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Pine Inc. owns 25% of Tantramar and has significant influence, so it uses the equity method. Pine's share of Tantramar's net income is 25% of $240,000, which is $60,000. Pine's share of the dividend is 25% of $45,000, which is $11,250. The balance increases by the net income share minus the dividend share: $60,000 - $11,250 = $48,750.

Pine Inc Owns 25% of Tantramar Sand and Gravel and Has