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:

Diameter

A straight line passing from side to side through the center of a body or figure, especially a circle or sphere.

Flat Tapers

Tapering geometry where the taper is flat, usually referring to a gradual decrease in thickness or diameter over the length of an object.

Cutting Plane

An imaginary plane where an object is assumed to be cut through to produce sectional views for technical drawings.

Theoretical

Pertains to concepts or ideas existing in theory and not necessarily by practice or actual implementation.