Calculate total investments shown on December balance sheet

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Question - On January 1, 2036, Cp9-I5T Company acquired the following investments:

1. 5,540 shares (representing 17%) of BG-8Yt Company stock for $95,000

2. 22,100 shares (representing 45%) of Ix-7n Company stock for $522,000.

BG-8Yt Company and Ix-7n Company reported the following information for 2036:

 

BG-8Yt Company

Ix-7n Company

Net income

$220,000

$320,000

Total dividends paid

$45,000

$13,000

Market value of stock at Dec 31 $23 per share $36 per share.

Required - Calculate the total investments shown on Cp9-I5T's December 31, 2036 balance sheet (i.e., calculate the balance in the investment in BG-8Yt Company + the balance in the investment in Ix-7n Company at December 31, 2036).

Reference no: EM132748176

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