Sibery Inc Required:
Calculate the Balance of the Investment in Alway Account

question 53

Essay

Sibery Inc. uses the equity method of reporting its 40% investment in Alway Co. The balance in the Investment in Alway was $70,750 at January 1, 2012. During the next three years, Alway reported the following net earnings (losses)and dividends paid.
$$\begin{array} { | l | r | r | } \hline & \text { Net earnings (loss) } & \text { Dividends paid } \\& \$ & \$ \\\hline 2012 & 155,600 & 140,000 \\\hline 2013 & 35,700 & 140,000 \\\hline 2014 & (123,400) & 0 \\\hline\end{array}$$ Required:
Calculate the balance of the Investment in Alway account at December 31, 2014.

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Definitions:

Elements

Fundamental components or parts that combine to form a whole, often referring to substances that cannot be broken down into simpler forms by chemical means.

Feedback Quality Control

Inspecting and testing products after they are produced.

Inspecting

The act of examining something carefully in order to determine its condition or identify problems, often performed as part of quality control in manufacturing.

Testing

The process of evaluating the functionality, quality, or performance of a product or system through examination and trial.