What amount would power report on its statement

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Question - Power Ltd. purchased 40% of the common shares of Sub Co. on January 1, 2020, for $305,000.As part of the investment, Power and the other shareholder in Sub signed an agreement under which the two shareholders had joint control over Sub. The acquisition differential on Power's 40% investment was $50,000. It pertained entirely to Sub's equipment, which had a remaining useful life of 10 years at the date of the investment by Power. During 2020, Sub reported net income of $170,000 and paid dividends of $100,000. Power reports its investment in Sub using the equity method.

Required - What amount would Power report on its statement of financial position for Investment in Sub Co. at December 31, 2020?

Reference no: EM133158336

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