Potion Corporation acquires 30% of the outstanding voting common shares of the Formula Corporation for $600,000.Potion Corporation acquires the investment in Formula Corporation by buying previously issued shares of Formula Corporation from other investors. Between the time of the acquisition and the end of Potion Corporation's next accounting period, Formula Corporation reports earnings of $80,000; and pays a dividend of $30,000 to holders of its common stock.
Formula Corporation reports earnings of $100,000 and pays dividends of $40,000 during the subsequent accounting period.
During the next accounting period, Potion Corporation sells one-fourth of its investment in Formula Corporation for $165,000.
After the sale, the balance in the Investment in Stock of Formula Corporation account is:

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The Answer of Potion Corporation acquires 30% of the outstanding voting common shares of the Formula Corporation for $600,000.Potion Corporation acquires the investment in Formula Corporation by buying previously issued shares of Formula Corporation from other investors. Between the time of the acquisition and the end of Potion Corporation's next accounting period, Formula Corporation reports earnings of $80,000; and pays a dividend of $30,000 to holders of its common stock.
Formula Corporation reports earnings of $100,000 and pays dividends of $40,000 during the subsequent accounting period.
During the next accounting period, Potion Corporation sells one-fourth of its investment in Formula Corporation for $165,000.
After the sale, the balance in the Investment in Stock of Formula Corporation account is:

Potion Corporation Acquires 30% of the Outstanding Voting Common Shares