What is the balance in the Investment in Stempy account at the end of 2019?

Question

Quizplus · Accepted Answer

To find the balance in the Investment in Stempy account at the end of 2019, we need to add the beginning balance ($150,000) to the net income for the year ($244,960).

$150,000 + $244,960 = $394,960.

However, we also need to add in the 50% share of Stempy's income, which is $50,000.

$394,960 + $50,000 = $444,960.

Therefore, the balance in the Investment in Stempy account at the end of 2019 is $444,960 (option C).

What Is the Balance in the Investment in Stempy Account