On January 1, Puckett Company paid $1.85 million for 92,500 shares of Harrisons voting common...
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Accounting
On January 1, Puckett Company paid $1.85 million for 92,500 shares of Harrisons voting common stock, which represents a 40 percent investment. No allocation to goodwill or other specific account was made. Significant influence over Harrison is achieved by this acquisition and so Puckett applies the equity method. Harrison distributed a dividend of $3 per share during the year and reported net income of $608,000. What is the balance in the Investment in Harrison account found in Pucketts financial records as of December 31?
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