Charlie Co

question 76

Essay

Charlie Co. owns 30% of the voting common stock of Turf Services Inc. Charlie uses the equity method to account for its investment. On January 1, 2011, the balance in the investment account was $624,000. During 2011, Turf Services reported net income of $120,000 and paid dividends of $30,000.
What is the balance in the investment account as of December 31, 2011?

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Definitions:

Heredity

The genetic transfer of mental or physical features from parents to their offspring across generations.

Genetics

The branch of biology that deals with heredity and the variation of inherited characteristics in living organisms.

Human Development

The scientific study of the changes that occur in people as they age from conception until death.

Career

The sequence and nature of one's work roles and activities over a period of time, often reflecting personal skills and interests.