On January 1, 20X1, ABC Corp purchased 22.49% of the common shares of XYZ inc...
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Accounting
On January 1, 20X1, ABC Corp purchased 22.49% of the common shares of XYZ inc for $85,193. The investment is reported using the equity method, as ABC has significant influence over XYZ. XYZ reported net income and dividends of $42,597 and $17,039 respectively for the fiscal year 20X1. For the fiscal year 20X2, XYZ reported net income and dividends of $59,635 and $68,157 respectively. Calculate the balance of 'Investment in XYZ' account on ABC's balance sheet on December 31, 20X1. Assume both companies have a December 31 fiscal year end.
a.
$95,488
b.
$90,941
c.
$88,667
d.
$93,215
e.
$86,394
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