On January 1, 2021, Bull Corporation purchased 25% of the common shares of Dozer Corporation for $ 200,000. During 2021, Dozer Corporation reported profit of $ 80,000 and paid cash dividends of $ 40,000. The balance of the Investment in Associate-Dozer Corp. account on the books of Bull Corporation at December 31, 2021 is

Question

Quizplus · Accepted Answer

Bull Corporation's share of Dozer Corporation's profit is $20,000 (25% x $80,000), and its share of Dozer Corporation's dividends is $10,000 (25% x $40,000). Therefore, the balance of the Investment in Associate-Dozer Corp. account on the books of Bull Corporation at December 31, 2021 is $210,000 ($200,000 + $20,000 - $10,000).

On January 1, 2021, Bull Corporation Purchased 25% of the Common