Calculate the income from Joshua Corp investment

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Question - On January 1, Year 7, Joshua Corp. purchased 20% of the outstanding ordinary shares of Deng Company at a cost of $950,000. Deng reported profit of $900,000 and paid dividends of $600,000 for the year ended December 31, Year 7. The market value of Joshua's 20% interest in Deng was $990,000 at December 31, Year 7. On December 31, Year 8, Deng reported a profit of $540,000 paid dividends of $360,000. The market value of Joshua's 20% interest in Deng was $940,000 at December 31, Year 8. On January 1, Year 9 Joshua sold its investment in Deng for $940,000.

Required - Calculate the income from Joshua Corp's investment in Deng and the balance in the Investment account in Deng for Year 7, Year 8 and Year 9?

Reference no: EM132714749

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