On December 1, 2008, CXC purchased 200,000 shares representing 45 percent of the outstanding shares of PTC for cash of $2,500,000. As a result of this purchase, CXC has the ability to exercise significant influence over the operating and financial policies of PTC. 45 percent of the net income of PTC amounted to $20,000 for the month of December and $350,000 for the year ended December 31, 2008. On January 15, 2009, cash dividends of $0.30 per share were paid to shareholders of record on December 31, 2008.
Calculate CXC's Investment in PTC to be should be shown in CXC's December 31, 2008, balance sheet.

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The Answer of On December 1, 2008, CXC purchased 200,000 shares representing 45 percent of the outstanding shares of PTC for cash of $2,500,000. As a result of this purchase, CXC has the ability to exercise significant influence over the operating and financial policies of PTC. 45 percent of the net income of PTC amounted to $20,000 for the month of December and $350,000 for the year ended December 31, 2008. On January 15, 2009, cash dividends of $0.30 per share were paid to shareholders of record on December 31, 2008.
Calculate CXC's Investment in PTC to be should be shown in CXC's December 31, 2008, balance sheet.

On December 1, 2008, CXC Purchased 200,000 Shares Representing 45