vaughn Inc. acquired all of the outstanding common stock of Roberts Co. on January 1, 2020, for $276,000. Annual amortization of $21,000 resulted from this acquisition. Vaughn reported net income of $80,000 in 2020 and $60,000 in 2021 and paid $24,000 in dividends each year. Roberts reported net income of $50,000 in 2020 and $57,000 in 2021 and paid $12,000 in dividends each year. What is the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied

Respuesta :

Answer:

$317,000

Explanation:

Calculation for the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied

Investment in Roberts Co. balance = $276,000 + $50,000 - $ 12,000 - $21,000 + $ 57,000 - $12,000 - $ 21,000

Investment in Roberts Co. balance = $317,000

Therefore the Investment in Roberts Co. balance on Vaughn's books as of December 31, 2021, if the equity method has been applied is $317,000