On January 1, 2014, the Express Corporation purchased 30% of the common stock outstanding of the Bangor Corporation for $200,000. During 2014, the Bangor Corporation reported net income of $80,000 and paid cash dividends of $20,000. The balance of the Stock Investments-Bangor account on the books of Express Corporation at December 31, 2014, is

Question

Quizplus · Accepted Answer

The balance is calculated as the initial investment plus the investor's share of the investee's net income minus the investor's share of dividends. $200,000 + (30% of $80,000) - (30% of $20,000) = $218,000.

On January 1, 2014, the Express Corporation Purchased 30% of the Common